The Coca-Cola Company announced that it has completed its acquisition of Chi Ltd. in Nigeria. Coca-Cola first announced a minority investment in Chi three years ago and, as planned, has now acquired full ownership of the company.
This acquisition further signals Coca-Cola’s optimism about Africa’s consumer opportunity and a commitment to its long-term investment and growth plan on the continent, where it has been present for more than 90 years.
With this, the non-alcoholic beverage market can be said to have witnessed a revolution as in 2016, the company acquired a 40% minority stake in Chi and increased ownership on 30th January 2019.
In a statement at Eko Hotels, Lagos on Wednesday, 1st February 2019, Coca-Cola announced that it has extended its minority investment in the company to full ownership.
The president of the West Africa business unit of Coca-Cola, Peter Njonjo shared that “Coca-Cola is continuing to evolve as a total beverage company, and Chi’s diverse range of beverages perfectly complements our existing portfolio, enabling us to accelerate expansion into new categories and grow our business in Africa,”
“We will support the Chi management team in building on the company’s remarkable heritage and achievements while using the scale of the Coca-Cola system to replicate their success in more markets across Africa.”
While reacting to questions on if the products will be collapsed, Njonjo reinterated that “all products will co-exist. Already Chi sells high quality products so we shall continue with that quality and affordable pricing. Our objective is to grow the Chi and Hollandia units into a global multi-billion dollar brand”
The Public Affairs and Communications Director, West Africa Business Unit, Clem Ugorji, however reiterate that “this acquisition is a testament to how we will achieve our objectives and it is a celebration of entrepreneurship.”
In a September 2018 interview, Njonjo had said that the company’s drive to diversify its product range would give it some flexibility.
Chi Limited was founded in Lagos in 1980. It produces juice under the Chivita brand, Caprisonne and value-added dairy under the Hollandia brand.