Pepsi to expand production line in Cagayan de Oro
Posted on December 10th, 2009
A new production in its Cagayan De Oro plant will be put up by the Pepsi-Cola Product Philippines, Inc. The company has allotted P350 million for the new plant. The new production line, according to Pepsi’s disclosure to the Philippine Stock Exchange (PSE), is intended to boost the company’s capacity and further bolster its position in the local beverage market.
For its fiscal year ending June 2010, the company said earlier that it was ready to spend up to P2 billion for its capital expenditures. These would be mainly for the expansion of their existing lines, as well as the launching of new products to keep up with the increasing preferences of consumers for beverages associated with health and wellness.
The Cagayan De Oro plant’s expansion line will be providing an additional six million cases of non-carbonated and carbonated drinks to the company’s existing 170 million cases a year. This is expected to ensure sufficient growth for Pepsi over the next five years. The company also plans to further grow its non-carbonated beverage (NCB) line through acquisitions.
The NCB product offerings of the company have been expanded in line with its strategy to make products available at affordable packaging across the country.
Pepsi is majority owned by the Guoco Group and US-based PepsiCo. Inc. It posted a net income of P799.69 million last year or an increase of five percent from P760.7 million in 2007. The company’s net sales rose 9.6 percent while operating income grew 19 percent to P1.1 billion.
Presently, Pepsi holds 18 percent and 25 percent of the carbonated and non-carbonated beverage markets, respectively.
