Beverage company Coca-Cola has unveiled plans to invest $600 million in Nigeria, over the next few years. Peter Njonjo. President West Africa operations revealed this in a chat with journalists. The company also plans to increase the proportion of raw materials sourced from the country to 75% by 2020. The investments are part of a larger strategy, by the Coca-Cola company to invest $20 billion in Africa, as well as expand its product range beyond soft drinks.
Where the money will go to?
The company will introduce new products such as flavoured and condensed milk, iced tea and bottled water. Coca Cola also plans to take full control of Chi Limited in the next 3 years. Coca-Cola bought a 40% stake in the company for $240 million last year.
Why the move
The company is investing in other products, in order to expand its consumer base. As people become more health conscious globally, there has been a drop in the consumption of carbonated drinks. Some countries have also tinkered with the idea of imposing a tax on them to reduce their consumption.
Benefits of the planned investment
The planned investment by the company, will lead to the creation of more jobs, which will help reduce unemployment in the country. An increase in sales, also means more revenue for the government. Nigeria’s economy went into recession last year due to a drop in crude oil prices and production volumes.
The Coca-Cola company was founded on May 8, 1886 in Atlanta, USA by Asa Grigs Candler who bought the Coca Cola formula and brand from John Pemberton in 1889. Coca Cola was introduced into the Nigerian market in 1951, but domestic production began in 1953 by the Nigerian Bottling Company (NBC). Coca Cola products sold in Nigeria include Coca Cola, Sprite, Fanta, Five Alive and Eva water.
