Coca-Cola has announced its full acquisition of Chi Limited, in fulfilment of its earlier desire to acquire full ownership of the beverage company.
When the company acquired a 40% minority stake in Chi in 2016, it expressed interest in increasing ownership within three years.
“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,” said Peter Njonjo, President, Coca-Cola (West Africa).
Coca-Cola said it 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.
Chi Limited, founded in 1980, produces juice under the Chivita brand, dairy products under the Hollandia brand, and other fruit drinks under the Caprisonne brand
The Chi full acquisition is in line with Coca-Cola aspiration to diversify its product range in other to give its operations some flexibility as affordability begins to be a bigger issue in the drinks and beverage market, especially in Nigeria.
“We realise that in certain pack formats you can only go down so low. But once you start looking at pouches and still products, like juice and drinking yoghurts, that allows you to start accessing much lower price points,” Njojo said.