MANILA -- Macay Holdings Inc., owned by former Ambassador Alfredo Yao, on Thursday said its board approved the acquisition of ARC Holdings Inc. in a move to consolidate all the licensing and trademark of the RC Cola brand in the Philippines under one roof.
“The board further authorized the president, Antonio Panajon, to negotiate, execute and sign such agreements, papers and other documentation pursuant to such acquisition,” the company said in its disclosure to the Philippine Stock Exchange.
ARC Holdings is the holder and trademark licenses of Royal Crown Cola Inc., owner of the RC Cola brand, in the Philippines.
The company did not state how much it will buy ARC Holdings. Yao, however, controls both Macay and ARC Holdings.
The company earlier said it sees the need to expand in Northern Luzon, the Visayas and Mindanao for its primary product RC Cola, a soft drink becoming popular in far-flung areas outside of Metro Manila and the country’s key cities.
“On the short term, our plan is to expand the core business. I think you’ve seen the areas we have not covered yet. I think based on your observation, RC is not as big as Coke. That’s very obvious. And therefore there’s a huge potential. Because if you have a growing population, naturally you have to grow with it,” Panajon said earlier.
The company said it plans to eat the market share of Pop-cola in the Philippines, a brand owned by Coca-Cola but has been rapidly losing presence in the provinces.
The company is also looking at acquisitions to grow the business on other consumer-related market, but it prefers to maximize the opportunities in the beverage segment, officials said. Yao, the company’s chairman, said Macay’s franchise for RC Cola allows the company to reach out to other Asean markets, especially with the scheduled opening of the integrated regional economy bloc by 2015.
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