Listed Pepsi-Cola Products Philippines, Inc. will add a production line at its Cagayan de Oro plant to expand manufacturing capacity and increase its nationwide presence.
The soft drink maker told the Philippine Stock Exchange on Thursday it has earmarked P350 billion for the project, which was recently approved by its board.
Pepsi-Cola Products Philippines has 11 bottling plants nationwide. Once the Mindanao plant expands, production will increase by six million cases annually. The company produces 170 million cases yearly.
Pepsi-Cola Chairman Micky Yong earlier told reporters the company was allotting P2 billion next year to expand its plant in Mindanao, as well as introduce new noncarbonated products.
The company is also tying up with a local renewable energy firm to cut energy-related expenses by as much as a fifth.
Daniel D. Gregorio, Sr., senior vice-president for manufacturing and logistics, earlier noted that for the past three years, the market for carbonated drinks has been growing at only 9%, lower than the 30% growth in the noncarbonated drink market.
Pepsi-Cola’s noncarbonated brands include Tropicana Twister, energy drink Propel, Lipton Ice Tea, Premier and Sting. Its carbonated drinks include Pepsi, 7-Up, Mountain Dew, Mirinda and Mug.
The company holds about a fifth of the carbonated soft drink market, while its market share for noncarbonated soft drink is about a quarter.
For its fiscal year ending in June, Pepsi-Cola Products Philippines’ net profits went up by 5% to P800 million, while revenues posted double-digit growth to P14.2 billion.
Yong earlier said he was optimistic about the next fiscal year, when consumers are expected to spend more during the election year.