Coca-Cola and Tropical General Investments Group (TGI Group)—the holding company of Chi, Nigeria’s leading dairy and juice company—have announced a binding agreement for Coca-Cola to acquire an initial minority equity shareholding in Chi. The agreement creates a strategic relationship between two beverage industry leaders within Africa’s largest economy that together serve Nigeria’s most popular sparkling soft drinks, juices, value-added dairy, and water beverage brands.
Within the agreement, Coca-Cola has made an initial 40% equity investment in Chi and intends to increase ownership to 100% within three years, subject to regulatory approvals, while working on other long-term commercial structures. Additionally, the parties have agreed to jointly discuss and explore other opportunities in the region to further develop this relationship.
The investment in Nigeria’s leading value-added dairy and juice beverage brands further expands Coca-Cola’s West African portfolio of still beverages while establishing its presence in Africa’s high-growth value-added dairy category. The agreement will allow both companies to leverage their respective investments and expertise to further drive innovation, optimize efficiency, and strengthen route-to-market to accelerate growth and increase consumer availability and choice.
“For more than 30 years Chi’s leadership has built a greatly admired business that has quickly grown to become Nigeria’s leading producer and distributor of value-added dairy and juice products and we are delighted to enter the next phase of our growth journey together,” said Nathan Kalumbu, president, Coca-Cola Eurasia and Africa. “Coca-Cola and Chi share the same commitment to Africa, to investing in our operations and to continuous innovation, and our relationship will allow us to continue to provide Nigerian consumers the No. 1 beverage in each of the categories we serve.”