Arroyo Welcomes Coca-Cola's Decision to Stay in Philippines

MANILA, March 28 Asia Pulse - President Gloria Macapagal-Arroyo hailed Wednesday the decision of US softdrink giant Coca-Cola Company to stay and expand its operations in the Philippines after it gained full ownership of Coca-Cola Bottlers Philippines Inc.

Coca-Cola Company has bought from San Miguel Corporation (SMC) its 65 per cent stake in the local bottlers for US$590 million.

In February 2001, SMC, the country's largest food and beverage company, repurchased from Australia-based Coca-Cola Amatil (ASX:CCL) its 65 per cent stake in the company, while 35 per cent remained with Coca-Cola Company.

Neville Isdell, Chairman of the Board and Chief Executive Officer (CEO) of the Atlanta-based softdrink firm, informed the President of his company's "desire to stay in the Philippines" during a courtesy call in Philippine Presidential Palace Malacanang.

"He (Isdell) made a formal commitment (to the President) regarding their desire to stay here. They will continue to expand (their operations in the Philippines)," Senior Adviser on International Competitiveness and former Foreign Affairs Secretary Roberto Romulo said.

Romulo said the first thing the softdrink company would do is to invest in 50,000 units of refrigeration equipment for the company's cold chain management involving hundreds of thousands of outlets nationwide.

He said more new jobs would be created for the Filipinos with the company's planned expansion.

"He (Isdell) pointed out that there is a multiplier of 10 for every person they hire, 10 people become economically benefited from their operations so it is a very meaningful investment," Romulo said.

He also said that since the company is celebrating its 80 years in the Philippines, its Little Red Schoolhouse project would be expanded to 80 three-classroom schoolhouses from the existing 61 schoolhouses.

"It's an old project that they would like to continue and expand, especially in the remote areas. It is the company's commitment to the country," Romulo said.

"Mr. Isdell is now committed more than ever," he added.

(PNA)

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