The stock of Coca-Cola Co (NYSE:KO) closed at $44.91 gaining 0.60% in yesterday’s trading session. This company’s Nigerian operation has plans underway to channel about $600 million by 2020 into its business in the hope that it will help boost sales.
The provider is also exploring a global strategy, in which it hopes to succeed in extending the product range beyond its soft drinks. The president of the West Africa operation, Peter Njonjo, said that the company’s goal was to get to that point where it would provide whatever beverages customers needed across all their life stages.
The funds are part of a pledge by the company to make an investment of about $17 billion in Africa by 2020. James Quincy, the provider’s global Chief Executive Officer outlined that Coca-Cola needed to grow beyond its enormous brand. He thinks that it would be a prudent move for the company to consider exhibiting less reliance on the carbonated soft drinks.
Last year, the company channeled about $240 million in the purchase of a 40 percent stake in the Nigerian juice and dairy company Chi Ltd.
Coca-Cola has not been spared in the economic slump experienced in Nigeria which was sparked by a decline in output and prices of oil. The product happens to be the country’s largest foreign exchange earner.
The high inflation has negatively impacted most of the sectors in the country’s economy. It started off by first of all increasing the production costs. The dollar scarcity culminated in a rise in the price of the various imported goods. This provider boasts of 30 distribution depots, 3,600 direct employees, and 11 bottling plants across Nigeria. It isn’t yet listed in the West African nation and Njonjo was turned down the request to share crucial details on earnings or the production capacity.
There have been surges in food prices as inflation continues to take root in the country. Njonjo opines, “As disposable incomes start getting under pressure, expenditure in products like ours start becoming inaccessible to most consumers.”