Coca-Cola Buys Stake In Nigerian Juice And Dairy Company CHI To Accelerate Push Into Africa

Coca-Cola has acquired a minority stake in Nigerian juice and dairy company, CHI, as it looks to accelerate its push in Africa while expanding its collection with healthier alternatives to carbonated drinks.

The company paid around $240m for a 40 per cent stake in the CHI, which is owned by TGI Group, with plans to purchase the remaining 60 per cent within three years. The deal will help the drinks giant strengthen its modest 3.5 per cent share of the Middle East and Africa’s fragmented $8.03bn juice market.

The move illustrates Coke’s efforts to confront the decline of its fizzy drinks amid widespread criticism of the sugar levels contained within them. It also gives the Atlanta-based beverage giant a platform to develop healthier alternatives in a region with one of the world’s fastest growing populations.

“We are extremely optimistic about Africa’s continued economic and social growth and recognize the importance of ensuring we stay one step ahead of evolving consumer tastes by broadening our portfolio and introducing new products,” said Kelvin Balogun, president of Coca-Cola Central, East and West Africa, in a news release.

The Lagos-based company’s chairman, Cornelis Vink, told the Financial Times that the deal would see Coca Cola “put its leading still drinks brands on to the CHI platform and contribute its know-how in innovation, branding and operational efficiency