Coca-Cola's bottling operations not affected by plant closure
MANILA, Philippine - Coca-Cola Bottlers Philippines Inc. (CCBPI) on Monday said its bottling operations in the country are not connected with the reported closure of The Coca-Cola Company's concentrate plant in Canlubang, Laguna.
"We wish to clarify that the Coca-Cola Plant closure in Laguna recently reported in various news publications is not connected to the bottling operations of Coca-Cola FEMSA Philippines, and the affected employees are not associates of our company," Coca-Cola FEMSA Philippines said in a statement.
Earlier this year, Mexico's Coca-Cola FEMSA acquired a 51 percent stake in Coca-Cola Co's Philippines bottling operations.
Coca-Cola FEMSA will have the option to acquire the remaining 49% of CCBPI at any time during the next 7 years.
"The Philippines marks the first expansion of Coca-Cola FEMSA outside of Latin America, and reflects our confidence in the opportunities this country provides. We are now in a process of transformation, with the objective of generating economic and social value for all those who come in contact with our brand," Coca-Cola FEMSA said.
Coca-Cola Bottlers Philippines has 23 production plants that serve almost 800,000 customers. Sales of the firm is expected reach about 530 million unit cases of beverages this year.
Meanwhile, in a separate statement, The Coca-Cola Company defended its move to shutter the concentrate plant in Canlubang, Laguna, saying it is committed to investing in the Philippines.
"We reaffirm the commitment of The Coca-Cola Company to invest $1 billion in the Philippines during the period 2010 until 2015. The investment is in line with the company’s mandate to support the local economy and to build sustainable business opportunities for Filipinos," the company said in a statement.
The Philippine Star reported on Monday that Coca-Cola has decided to close the plant as part of efforts to streamline regional operations.
"In order to streamline operations, The Coca-Cola Company continuously reviews its concentrate
supply chain to drive greater efficiency and position itself to meet future growth in Asia. As a result of that review, the Company has decided to produce all concentrate and beverage base for the Philippines in Singapore, and to close the Philippines concentrate plant. This decision will allow us to be more efficient and to increase flexibility in the Asia supply chain," the company said.
Coca-Cola said it has undertaken efforts to mitigate the effects of the plant closure on 57 employees working there.
Employees will be reassigned to either other plants or facilities in the Philippines, or to the concentrate plant in Singapore. Employees will also get competitive severance package.
"Additionally, Coca-Cola has taken the necessary steps to inform and coordinate with the Department of Labor and Employment and the other relevant government agencies to ensure our full compliance with the legal requirements for the plant’s closure," it said.