Pepsi expands production lines

MANILA, Philippines - Beverage maker Pepsi-Cola Products Philippines Inc. is preparing to meet higher demand for its products by putting up new production lines and improving its distribution network.

“We remain energized by and optimistic about the country’s high consumption story and will continue to invest in its growth,” Pepsi-Cola president Partho Chakrabarti said.

“To meet rising demand, we have considerably invested in increasing our production capabilities for long-term growth,” said Jika Dalupan, Pepsi-Cola vice-president for corporate affairs and communications.

Pepsi-Cola has completed the installation of three new lines – Rosario in La Union, Muntinlupa and Davao.

“These additional capacities created more manufacturing headroom, provided multiple product capabilities and ensured a better support for sales,” Dalupan said.

Pepsi-Cola also beefed up its distribution network by partnering with more outlets to ensure that its products are available at all possible distribution channels.

So far, the exclusive bottler of PepsiCo beverages in the Philippines serves more than 500,000 outlets nationwide.

Chakrabarti said Pepsi-Cola is a beneficiary of robust government and consumer spending last year and lower prices of key ingredient sugar.

“On top of these achievements, Pepsi-Cola continues to outperform the industry in both carbonated and non-carbonated soft drinks segments,” he added.

Net income of Pepsi-Cola jumped 20 percent to P270 million in the first three months of the year. Gross revenues hit P6 billion, up 14 percent from a year ago.

The 18-percent growth in sales volume offset the 13-percent increase in cost of sales, which consists primarily of raw and packaging materials, direct labor and manufacturing overhead.

Pepsi- Cola is the sole bottler and seller of PepsiCo beverages in the Philippines which include Pepsi-Cola, Mountain Dew, Seven Up, Mirinda, Gatorade, Mug, Tropicana, Lipton, Sting and Premier.

Pepsi-Cola has just joined the fray in the powdered drinks category through Mirinda Powder Fun Mix as it aims to strengthen its non-carbonated business.

In September, it launched Tropicana Coco Quench which is 100-percent made from real coconut water. It will be available initially in the Philippines, and later on to the rest of Asia as the company seeks to expand its non-carbonated beverage segment.

The local Pepsi-Cola unit is partly owned by Lotte Chilsung, one of the biggest beverage companies in South Korea.