This Korean Drink Manufacturer Now Owns Major Stakes of Pepsi Philippines
Korean beverage brand Lotte Chilsung Beverage Co. successfully secured management rights to Pepsi Philippines as part of its expansion plans in Southeast Asia.
In 2022, the local food and beverage industry brought in a gross value of approximately PHP 152.6 billion—a significant increase compared to the previous year. More so, this growth proves how beverage manufacturing remains one of the leading industries in the country.
That’s not all. The increased consumption of soft drinks in 2022 also showed a massive improvement in the soft drinks sector, given that it remained one of the most popular drinks in the country.
Just recently, Korean drink manufacturer Lotte Chilsung Beverage Co., Ltd. announced their successful acquisition of significant majority stakes in Pepsi Philippines. This move is big news for the manufacturing industry, as this signifies growth for Lotte outside its home turf.
Expanding the Company Beyond South Korea
The acquisition of Pepsi Philippines took place when Lotte Chilsung directly bought the local division from the parent company, PepsiCo. This is believed to be part of Lotte’s long-term expansion plan, since the company is also known for its soft drinks in South Korea.
“With this acquisition of management rights, the proportion of our overseas sales, including exports, will expand to the upper 30% range next year,” an official of Lotte Chilsung said. “Next year, we will be reborn as a global beverage company.”
By acquiring Pepsi Philippines, Lotte Chilsung will be in charge of Pepsi variants and Mountain Dew. They will also be in charge of the bottling and distribution of Gatorade sports drinks and Sting Energy Drinks.
Plans for Latest Acquisition
Pepsi Philippines has 12 plants and 14 sales branches across the country, which will now be used by the Korean firm. Moreover, these facilities may be used for the production of Lotte Chilsung’s drinks—Milkis, Chilsung Cider, and Chum-Churum Soju.
More so, the company also hopes to turn its Philippine-based operations as the starting point of its expansion plans in Southeast Asia and other global markets.
“With the acquisition, the percentage of our overseas sales next year is expected to boost to over 30 percent of our total revenue, including export performance,” the Lotte Chilsung Beverage official explained. “We will enhance PCPPI’s operating profit margin to 8.5% by 2025 with investments such as in-process optimization through enhancing the IT infrastructure, automation equipment, and the streamlining of our logistics network.”
Through this acquisition, Filipinos can still enjoy one of the country’s most popular soft drinks together with some popular Korean drinks. This means that local restaurants and businesses can find it easier to acquire Korean drinks as part of their menu—given that some drinks will no longer have to be imported if it will be manufactured in the country.