Yao Group to consolidate RC Cola into Macay Holdings

MANILA, Philippines - The group of former ambassador Alfredo Yao plans to consolidate all the licensing, trademark and related rights of RC Cola in the Philippines under its publicly-listed investment vehicle Macay Holdings Inc.

In a disclosure to the local bourse, Macay Holdings said its board of directors has approved the full acquisition of subsidiary ARC Holdings Inc., owner the rights to the trademark of RC Cola in the Philippines.

“The proposed transaction is to fully consolidate under Macay all the licensing, trademark and related rights currently held by ARC Holdings on the RC Cola brand,” the company said.

The firm said terms and conditions of the transaction are still currently being negotiated and finalized.

Macay Holdings early this year created ARC, making it the owner of all assets of Asiawide Refreshments Corp., owner of exclusive license from RC Cola USA to distribute RC Cola in the Philippines, and Mega Asia Corp., operator of RC Cola bottling operations in the country.

Last June, Macay has infused more than P2 billion into ARC to finance the acquisition of machinery, equipment and other assets to be used in the beverage unit’s bottling operations.

The Yao-controlled company backed out of plans to take over two non-core bottling plants of subsidiary Zest-O Corp. in Luzon last week and instead settled for long-term operating lease arrangements.

The firm is targeting to become a diversified food and beverage company in the next five years through a local expansion program that will take advantage of the improving consumer spending in the Philippines.

Macay Holdings intends to expand its core business through ARC, which holds the exclusive license to manufacture and distribute RC Cola, Fruit Soda Orange, Juicy Lemon and Arcy’s Rootbeer.

The company is also keen in venturing into juices and water as part of its plans to offer a whole range of beverage products.

 

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