SMC still in talks on Coca-Cola stake

San Miguel Corp. (SMC), the Philippines’ largest food and beverage conglomerate, said it was still negotiating the sale of its soft drinks bottling joint venture with Coca-Cola Co.

In a disclosure to the Philippine Stock Exchange, the company said discussions are still ongoing to sell its entire 65 percent stake in the venture to Atlanta-based Coca-Cola.

San Miguel and Coca-Cola jointly acquired Coca-Cola Bottlers Philippines Inc., or CCBPI, in July 2001 from Coca-Cola Amatil Ltd. of Australia. CCBPI sells nearly nine in every 10 soft drinks in the country.

"As previously disclosed, San Miguel Corp. and the Coca-Cola Co. are still in discussions on the ownership of CCBPI, which include negotiations over the Coca-Cola Co. taking at least a majority stake in, and management and operational control of, CCBPI," the company said.

"Discussions are ongoing and no definite agreements have been reached," San Miguel said.

CCBPI has suffered from declining sales volume as new beverages, such as bottled iced tea, are introduced in the market.

San Miguel’s profit last year was dragged down by CCBPI’s losses.

The beer-based San Miguel has diversified into all kinds of beverages as well as food processing and packaging.

The 115-year-old company has breweries in China, Vietnam, Indonesia, Australia and Thailand and packaging plants in China, Vietnam and Malaysia. - AP, AFP