PHILIPPINES: Soft drinks manufacturers suffer as unrest continues

Industry sources in the Philippines are saying unrest in the large, southern island of Mindanao has shaken consumer confidence and soft drink manufacturers are suffering.Apparently in the past two months there have been about 30 bombings and frequent kidnappings and according to sources: "The fear of kidnapping is very real and the unrest has made distribution of goods extremely difficult."Three typhoons in the past 12 days has put much of the country under water and with an economy apparently sluggish and even receding, manufacturers of consumer goods are suffering.Business analysts are still casting doubt over rumours that Coca-Cola Amatil may sell its Philippines business to one of its major shareholders the San Miguel Corp.According to analysts both San Miguel and the Coca-Cola Co. could face massive losses on their CCA shareholdings because of the sharp deterioration in CCA's share price over the past 12 months. Apparently if the rumours are true, it would leave CCA cashed up, but without exposure to major developing markets and long term earnings growth.