The Coca-Cola Company (NYSE: KO) and Tropical General Investments Group (TGI Group) - the holding company of Chi Ltd, Nigeria's leading dairy and juice company - today announced a binding agreement for The Coca-Cola Company to acquire an initial minority equity shareholding in Chi Ltd. 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. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160130005003/en/
Chi Limited's leading value-added dairy and juice beverage brands complement The Coca-Cola Company's broad beverage portfolio in Nigeria. (Photo: Business Wire)
Within the agreement, The Coca-Cola Company has made an initial 40 percent equity investment in Chi Ltd and intends to increase ownership to 100 percent 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 - which include Hollandia and Chivita - further expands The Coca-Cola Company's West African portfolio of still beverages while establishing Coca-Cola's 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. TGI Group's relationship with The Coca-Cola Company will also help Chi Ltd achieve its ambitious growth plans through access to Coca-Cola's broad product portfolio and integration into global best practices in production, distribution and brand-building.