Local Pepsi unit expands on strong consumer demand

MANILA, Philippines - Listed beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) is ramping up efforts to expand its facilities to take advantage of strong demand, a company official said.

“The market is growing and we are increasing our facilities,” said PCPPI chairman Oscar S. Reyes.

PCPPI’s expansion involves production capacity and logistics system, he said.

This will allow the company to jack up the “capacity to meet the market requirements” in both carbonated and non-carbonated products, he added.

In the first semester, PCPPI’s net income jumped 17 percent to P657.94 million from P560.41 million a year ago.

Its net sales gained 17 percent to P11.43 billion from P9.74 billion as flagship brand Pepsi led growth , driven by the carbonated softdrinks segment.

“Due to its exceptionally strong sales performance, the company will be making further investments in manufacturing and logistics,” PCPPI announced earlier.

“The company is optimistic to preserve growth and profitability through continued efforts to drive top-line growth, sustained cost management, continuous capital expenditures and increased marketing efforts,” PCPPI said.

In June, PCCPI said it is meeting higher demand through new production lines and an improved distribution network. Specifically, the company has completed the installation of three new lines located in Rosario in La Union, Muntinlupa and Davao.

PCPPI also beefed up its distribution network by partnering with more outlets to ensure that products are available at all possible distribution channels.

The company has established manufacturing facilities across the country, serving at least 500,0000 outlets and providing employment through its extensive distribution network.

PCPPI is the sole bottler and seller of PepsiCo beverages in the Philippines, which include Pepsi-Cola, Mountain Dew, Seven Up, Mirinda, Gatorade, Mug, Tropicana, Lipton, Sting and Premier. It is partly owned by Lotte Chilsung, one of the biggest beverage companies in South Korea.

PCPPI also just joined the fray in the powdered drinks category through Mirinda Powder Fun Mix as it aims to strengthen its non-carbonated business.

In September, it launched Tropicana Coco Quench, which is 100-percent fresh made from real coconut water. It will be available initially in the Philippines and later to the rest of Asia as it seeks to expand its non-carbonated beverage segment.