Coca-Cola Sells Chivita Hollandia to UAC of Nigeria

The Coca-Cola Company has agreed to sell its dairy-and-juices supplier, Chivita Hollandia, to UAC of Nigeria. While financial terms were not disclosed, the publicly listed UAC of Nigeria has heralded the acquisition as a 'strategic milestone' in its 'growth agenda'. This move aligns with Coca-Cola’s strategy to focus on the most scalable brands within a flexible and asset-light operational model.

Chivita Hollandia, or Chi Ltd, has established itself as a leading producer of fruit juices, nectars, and juice drinks under the Chivita brand, alongside yogurt and milk products under the Hollandia brand. UAC of Nigeria’s diverse product portfolio already includes popular names such as Gala sausage rolls and Supreme ice cream.

Fola Aiyesimoju, the group managing director of UAC of Nigeria, expressed optimism over the acquisition, citing significant potential to further develop Chi’s legacy of excellence. Eelco Weber, managing director of Chivita Hollandia, echoed this sentiment, anticipating a bright future bolstered by a dedicated partnership with UAC.

Coca-Cola’s history with Chi Ltd began with a 40% acquisition in 2016 and culminated in full ownership in 2019. The decision to divest reflects a broader strategy within Coca-Cola’s operations to streamline its brand portfolio.

Further bolstering its strategic interests in Nigeria, Coca-Cola Hellenic Bottling Company recently announced a $1 billion investment plan to enhance its manufacturing capacity, particularly focusing on returnable glass initiatives, thereby reinforcing its commitment to the region.