Pepsi PH allots P3.5 B for expansion

By Neil Jerome C. Morales, The Philippine Star

Posted at Jan 22 2014 09:07 AM | Updated as of Jan 22 2014 05:07 PM

MANILA - Beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) will invest P3.5 billion this year to continue expanding its production and distribution line as demand is expected to rise further.

The exclusive bottler of PepsiCo beverages in the Philippines is also introducing more non-carbonated drinks this year to continue the double-digit sales growth, its top official said.

“This year, (capital expenditures) will be P3 billion to P3.5 billion. On an average, we are going P3 billion to P4 billion a year,” PCPPI president Partho Chakrabarti told reporters yesterday.

More than 60 percent will be spent on expanding the production line as PCPPI prefers a 20-percent production capacity buffer that will allow the company to cater to increasing demand, Chakrabarti said.

The rest will be used to beef up the distribution channels, including the purchase of more trucks and coolers.

Last year, PCPPI put up a manufacturing plant in Sto.Tomas in Batangas and expanded facilities in Muntinlupa, Cebu and Davao.

The listed beverage maker is looking at continuing its strong sales growth this year.

“The year started well and we have all the programs in place so I see no reason why we can’t sustain what we have done in the last three years,” Chakrabarti said.

“In 2014, we will have good economic growth and consumption will grow. The beverage industry is expected to grow in line with the economy and we hope to do better than that,” he said.

In January to September last year, gross sales revenues jumped 17 percent to P19.4 billion, driven by high volume across major brands and categories like colas. In the nine-month period, earnings of PCPPI climbed 12 percent to P780.7 million from P696 million a year ago.