Misamis Oriental : New Battleground for the Global Cola Wars
Mike Banos
June 12, 2010
After the country´s liquor giants "Liquor War" two years ago, Misamis Oriental is again the chosen arena for the next phase of the "Cola Wars" between Coca Cola and Pepsi.
During the earlier to middle part of the decade, corporate rivals Tanduay Distillers Inc. (Tanduay) and Ginebra San Miguel Inc. (GSMI) brought their battle for the Philippine liquor market to the province by putting up new plants to consolidate control of the lucrative hard liquor market in the Visayas and Mindanao, as well as nearby markets in Asean.
The two liquor giants brought in combined capital investments of P2.4 billion in new plants and additional capacity.
Pepsi Cola Products Philippines, Inc. fired the first salvo when it informed the Philippine Stock Exchange December 10, 2009 of its plan to invest P350 million for an additional production line at its Cagayan de Oro plant which would expand its manufacturing capacity to six million cases annually.
Pepsi has declared it is ready to invest up to P2 billion for capital expenditures for its fiscal year ending June 2010, mainly for the expansion of existing lines and launch of new products to keep up with the increasing consumer preference for beverages associated with health and wellness.
The expansion would provide an additional six million cases of non-carbonated and carbonated drinks to Pepsi´s existing 170 million cases a year, which is expected to ensure sufficient growth for the company over the next five years.
Pepsi describes Mindanao as "something that is new which can give [the firm] a good 20% market growth in the succeeding years."
Not to be outdone, Coca Cola Bottlers Phils. Inc. (CCBPI) broke ground June 2, 2010 for a new PhP3-Billion "Mega-Plant" in Bgy. Katipunan, Villanueva, Misamis Oriental.
Coca-Cola Bottlers Philippines Inc. (CCBPI) P3-billion "Mega-Plant" now under construction in Barangay Katipunan, Villanueva, Misamis Oriental will be operational in February, 2011.
Villanueva Mayor Juliette T. Uy said the new 11-hectare facility is schedule to be operational by February, 20100 and will bottle the company´s signature soft drink brands and its bottled water and other beverage brands as well.
"Besides bottling, the plant will also include packaging and bottle manufacturing facilities," Uy said. "It will serve markets in Mindanao and the Visayas."
Uy said the finished products and raw materials for the mega plant would be coursed through the nearby Mindanao Container Terminal facility at the Phividec Industrial Estate-Misamis Oriental. Based on initial estimates of industry sources, the plant would have a combined capacity equivalent of over 400,000 cases a year.
CCBPI now operates two production lines with a daily capacity of 20,000 cases at a 2.3 hectare site in downtown Cagayan de Oro. Frequent production line stoppages due to floods, inadequate electrical supply and distribution problems due to vehicular traffic have forced company officials to look for a new and bigger site.
Industry sources say it took CCBPI some time to settle on its best choice due to the protracted drilling for a water supply. The new plant will have three deep wells compared to the two at its present site.
CCBPI) is wholly-owned by The Coca Cola Company, which bought the 65 shareholdings of San Miguel Corporation (SMC) in CCBPI in 2007 for US$590 million. The acquisition includes soft drinks manufacturer Cosmos Bottling Corporation (CBC), and Philippine Beverage Partners, Inc., the company which distributes the products. Today, the company's carbonated brands in the market include Coke, Diet Coke, Coke Zero, Sprite, Sprite Light, and Royal, and CBC brands Pop Cola, Sarsi, Cheers, Lift, Jaz Cola, and Sparkle.
With over 25 beverage brands, CCBPI claims leadership of the soft beverage corporation in the Philippines. With subsidiaries Cosmos Bottling Corporation and Philippine Beverage Partners Inc., it is one of the world's top bottlers of Coca-Cola and one of the Philippines' top 20 corporations in terms of revenue, the Philippines being the 5th largest market for Coca-Cola worldwide.
Similarly, Pepsi also sells in the Philippine domestic market its sparkling (carbonated) drinks like Pepsi, 7-Up, Mountain Dew, Mirinda and Mug as well as noncarbonated brands Tropicana Twister, Propel Energy Drink, Lipton Ice Tea, Premier and Sting. Pepsi currently holds 18 percent and 25 percent of the carbonated and non-carbonated beverage markets, respectively.
Besides the new Coca-Cola Plant and expanded Pepsi plant, Misamis Oriental also hosts other beverage plants such as the Asia Brewery, Inc. complex in El Salvador City, the GSMI plant in the Phividec Industrial Estate, Nature's Spring and Del Monte.
Just recently, beverage giant San Miguel Corporation (SMC) disclosed it will be investing P4-billion to expand new bottling plants in Laguna, Bicol, Ilocos Norte and Misamis Oriental over the next five years. San Miguel Brewery, Inc. is the beer unit of SMC. The company produces the flagship San Miguel Pale Pilsen, Red Horse Beer, Cerveza Negra and Gold Eagle Beer among other brands.
During the earlier to middle part of the decade, corporate rivals Tanduay Distillers Inc. (Tanduay) and Ginebra San Miguel Inc. (GSMI) brought their battle for the Philippine liquor market to the province by putting up new plants to consolidate control of the lucrative hard liquor market in the Visayas and Mindanao, as well as nearby markets in Asean.
The two liquor giants brought in combined capital investments of P2.4 billion in new plants and additional capacity.
Pepsi Cola Products Philippines, Inc. fired the first salvo when it informed the Philippine Stock Exchange December 10, 2009 of its plan to invest P350 million for an additional production line at its Cagayan de Oro plant which would expand its manufacturing capacity to six million cases annually.
Pepsi has declared it is ready to invest up to P2 billion for capital expenditures for its fiscal year ending June 2010, mainly for the expansion of existing lines and launch of new products to keep up with the increasing consumer preference for beverages associated with health and wellness.
The expansion would provide an additional six million cases of non-carbonated and carbonated drinks to Pepsi´s existing 170 million cases a year, which is expected to ensure sufficient growth for the company over the next five years.
Pepsi describes Mindanao as "something that is new which can give [the firm] a good 20% market growth in the succeeding years."
Not to be outdone, Coca Cola Bottlers Phils. Inc. (CCBPI) broke ground June 2, 2010 for a new PhP3-Billion "Mega-Plant" in Bgy. Katipunan, Villanueva, Misamis Oriental.
Coca-Cola Bottlers Philippines Inc. (CCBPI) P3-billion "Mega-Plant" now under construction in Barangay Katipunan, Villanueva, Misamis Oriental will be operational in February, 2011.
Villanueva Mayor Juliette T. Uy said the new 11-hectare facility is schedule to be operational by February, 20100 and will bottle the company´s signature soft drink brands and its bottled water and other beverage brands as well.
"Besides bottling, the plant will also include packaging and bottle manufacturing facilities," Uy said. "It will serve markets in Mindanao and the Visayas."
Uy said the finished products and raw materials for the mega plant would be coursed through the nearby Mindanao Container Terminal facility at the Phividec Industrial Estate-Misamis Oriental. Based on initial estimates of industry sources, the plant would have a combined capacity equivalent of over 400,000 cases a year.
CCBPI now operates two production lines with a daily capacity of 20,000 cases at a 2.3 hectare site in downtown Cagayan de Oro. Frequent production line stoppages due to floods, inadequate electrical supply and distribution problems due to vehicular traffic have forced company officials to look for a new and bigger site.
Industry sources say it took CCBPI some time to settle on its best choice due to the protracted drilling for a water supply. The new plant will have three deep wells compared to the two at its present site.
CCBPI) is wholly-owned by The Coca Cola Company, which bought the 65 shareholdings of San Miguel Corporation (SMC) in CCBPI in 2007 for US$590 million. The acquisition includes soft drinks manufacturer Cosmos Bottling Corporation (CBC), and Philippine Beverage Partners, Inc., the company which distributes the products. Today, the company's carbonated brands in the market include Coke, Diet Coke, Coke Zero, Sprite, Sprite Light, and Royal, and CBC brands Pop Cola, Sarsi, Cheers, Lift, Jaz Cola, and Sparkle.
With over 25 beverage brands, CCBPI claims leadership of the soft beverage corporation in the Philippines. With subsidiaries Cosmos Bottling Corporation and Philippine Beverage Partners Inc., it is one of the world's top bottlers of Coca-Cola and one of the Philippines' top 20 corporations in terms of revenue, the Philippines being the 5th largest market for Coca-Cola worldwide.
Similarly, Pepsi also sells in the Philippine domestic market its sparkling (carbonated) drinks like Pepsi, 7-Up, Mountain Dew, Mirinda and Mug as well as noncarbonated brands Tropicana Twister, Propel Energy Drink, Lipton Ice Tea, Premier and Sting. Pepsi currently holds 18 percent and 25 percent of the carbonated and non-carbonated beverage markets, respectively.
Besides the new Coca-Cola Plant and expanded Pepsi plant, Misamis Oriental also hosts other beverage plants such as the Asia Brewery, Inc. complex in El Salvador City, the GSMI plant in the Phividec Industrial Estate, Nature's Spring and Del Monte.
Just recently, beverage giant San Miguel Corporation (SMC) disclosed it will be investing P4-billion to expand new bottling plants in Laguna, Bicol, Ilocos Norte and Misamis Oriental over the next five years. San Miguel Brewery, Inc. is the beer unit of SMC. The company produces the flagship San Miguel Pale Pilsen, Red Horse Beer, Cerveza Negra and Gold Eagle Beer among other brands.
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