Coca-Cola has bought a 40% stake in Chi Ltd makers of the popular Chivita drink. Coca-Cola made this announcement on Saturday. According to reports from Reuters and the Wall-street Journal, the stake was acquired from TGI Group (Tropical General Investment) a majority shareholder in Chi Ltd.
According to Wall Street Journal the deal values Chi Ltd at about $1 billion and will see Coca-Cola buy the remaining 60% in three years. Ironically, Chivita drinks displaced Coca-Cola’s Five Alive as the most popular Nigerian juice drink following the Government decision to ban foreign imported juice in the early 2000’s.
According to Reuters TGI had been considering a sale for some time. , produces mostly fruit drinks, iced teas, snacks and dairy products. TGI Group is an international investment and holding company with diversified interests and investments in Nigeria, Ghana, Republic of Benin, Morocco, UAE, South Africa, China and several other emerging markets. The company is owned by a European family, according to Reuters.
The Wall-Street Journal also reported that Coca-Cola is shifting its focus on Africa as the next growth frontier as Americans and other Europeans move to more healthy conscious drinks. The American based company has already earmarked about $17 billion in the next decade with Nigeria being a top destination.