Pepsi to close Muntinlupa plant

MANILA, Philippines —  The exclusive manufacturer of PepsiCo products in the Philippines is looking to post robust growth in revenues this year and next, even with its planned closure of its plant in Muntinlupa by the end of this year in line with its aim to improve operations and profitability.

Pepsi-Cola Products Philippines Inc. (PCPPI) president and CEO Phyo Phyu Noe said the company’s revenue has been growing above the country’s gross domestic product (GDP) growth in the January to October period and the aim is to continue to see this for the rest of this year and next.

“We have to do that. If we don’t do that, then it will not be a turnaround. The market is already growing at above GDP, so we must grow above GDP. That’s a necessity,” he said.

PCPPI said it will halt operations at its facility in Tunasan, Muntinlupa City by the end of the year as part of the aim to improve business efficiency.

“Plant operations will be transferred to other locations as part of this process, ensuring continued service and product quality, as well as better business efficiencies,” PCPPI said.

The company said it would provide the necessary support to affected employees in accordance with law, company policy and conditions of existing collective bargaining agreements.

“PCPPI will continue to hold its headquarters in Muntinlupa City,” the company said.

Phyo said the company will continue to add capacity to its other plants.

The company has plants in San Fernando, Santo Tomas, Rosario, Davao, Bacolod, Naga, Zamboanga, Cagayan de Oro, Iloilo, Tanauan, and Cebu City.

Apart from Pepsi, PCPPI’s products include Mountain Dew, 7Up, Mirinda, Mug, Gatorade, Sting, Tropicana, Lipton Iced Tea and Premier.

Phyo said the greater availability of PCPPI’s products in terms of expanding distribution sites and ensuring supply has been key to the company’s revenue growth.

“Availability is key, because our products are already well-loved. We are simply making sure that our availability is improving month-after-month. That has been the focus for this year, its availability,” he said.

The focus on greater availability is in line with PCPPI’s three-year turnaround plan, which the company embarked on after Phyo took the helm in November last year.

The plan involves improving product distribution, manufacturing efficiency and logistics to make sure PCPPI’s products are available in sari-sari stores nationwide.

“We have 11 plants throughout the country. But at the same time, we need to make sure that these manufacturing facilities’ efficiency rates are high enough so that in the peak season, we don’t run out of stock,” Phyo said noting demand peaks in the summer and during the holiday season.