The Coca-Cola Company has agreed to sell dairy-and-juices supplier Chivita Hollandia to local food-and-beverage group UAC of Nigeria.
Financial terms were not disclosed.
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Publicly listed UAC of Nigeria, which announced the deal yesterday (30 July), described the deal as a “strategic milestone” in its “growth agenda”.
In a statement, UAC of Nigeria said the deal was in line with Coca-Cola’s “strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale”.
Chivita Hollandia, also known as Chi Ltd, produces fruit juices, nectars, and juice drinks under the Chivita brand, as well as yogurt and milk products under the Hollandia brand.
UAC of Nigeria’s product range includes Gala sausage rolls, Funtime snacks, and Supreme ice cream, along with bottled water Swan and quick service restaurant brand Mr Bigg’s.
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By GlobalDataFola Aiyesimoju, group managing director of UAC of Nigeria, said the “acquisition presents significant potential to build on Chi’s legacy of excellence and innovation”.
Coca-Cola acquired a 40% stake in the company in 2016 from Tropical General Investments Group and fully acquired the group in 2019.
According to Eelco Weber, the managing director of Chivita Hollandia, the dairy and juice business has made “significant progress over the past few years”, with the Chivita and Hollandia brands emerging as “clear leaders in their categories”.
Weber added: “We see a bright future for Chivita Hollandia. With the strength of
our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
For the US beverage major, the deal is in line with its “strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale”.
In September, local Coke bottler Coca-Cola Hellenic Bottling Company announced plans to invest $1bn in Nigeria over the next five years.
At the time, Coca-Cola HBC said the investment would on take in projects including expanding the manufacturing capacity at Nigerian Bottling Company (NBC) with an emphasis on returnable glass.
Coca-Cola HBC operates eight production plants in Nigeria, employing approximately 2,800 staff.
