Swire Coca-Cola Limited, a 100% owned subsidiary of Swire Pacific Group (UK), on January 2 announced the completion of the acquisition of Coca-Cola Vietnam Beverage Company Limited, the bottling franchise company of Coca-Cola Group (USA) in Vietnam.
In front of the Coca-Cola factory in Ho Chi Minh City. Photo: DNCC
Accordingly, Swire Coca-Cola Limited owns and operates 3 beverage production facilities, 18 production lines, and 6 distribution centers in Vietnam; at the same time employing more than 3,500 people directly and indirectly.
This transaction is Swire Coca–Cola’s second investment in Southeast Asia and marks the expansion of the company’s presence in the region, following the acquisition of Cambodia Beverage Company Limited in November 2022.
The value of the deal was not disclosed. However, in July 2022, Bloomberg reported that Swire Pacific Group pursued a plan to acquire Coca-Cola’s production activities in Vietnam and Cambodia for more than 1 billion USD and is expected to complete in 6 months. This information is quite consistent with what has happened today.
“As one of the fastest growing economies in Southeast Asia with pre-pandemic GDP growth of over 7% and a total population of 97 million with an increasing urbanisation, Vietnam is one of the most promising growth countries in Asia and offers significant growth potential for Swire Coca-Cola in the long-term”, Swire Coca-Cola shared the acquisition of Coca-Cola Vietnam in the press release.
The completion of the transaction reflects Swire Coca-Cola’s continued pursuit of its strategic vision for expansion in Southeast Asia, a region the company considers dynamic and vibrant with huge growth potential, especially in the rapidly growing beverage sector.
“The completion of the deal in Vietnam marks another historic milestone for Swire Coca–Cola, right after the Cambodia deal,” said Patrick Healy, President of Swire Coca–Cola in a press release. The large-scale operation system in Vietnam will complement Swire Coca-Cola’s current operating system in Cambodia.
According to this announcement, Ms. Karen So, CEO of Swire Coca-Cola, shared: “By taking advantage of existing strengths in commercial, marketing, supply chain, customer service capabilities, and digitalization in the regions where we do business, combined with the strengths and local understanding of our colleagues in Vietnam, we are ready to continue serving the needs of our customers and consumers. used in Vietnam effectively and actively contribute to the local community”.
Meanwhile, according to Ms. Claudia Lorenzo, President of Coca-Cola Group Southeast Asia and South Pacific, Swire Coca-Cola brings new energy to the business and the ability to further accelerate the remarkable growth of the Vietnamese market.
Swire Coca–Cola is a subsidiary of Swire Pacific Limited, listed on the Hong Kong Stock Exchange. As Coca-Cola’s fifth largest bottling partner by volume, Swire Coca-Cola has exclusive rights to manufacture, market and distribute Coca-Cola Group’s products in 11 provinces and cities of Shanghai ( China); Hong Kong; Taiwan; Cambodia; Vietnam and 13 US states.
Swire Coca-Cola’s partnership with The Coca-Cola Group dates back to 1965, with Swire acquiring a majority stake in Bottling Company in Hong Kong. Swire Coca–Cola currently produces more than 60 brands of soft drinks and distributes these products to 880 million people.
In addition to beverages, Swire Pacific is also a multi-industry corporation operating in various fields such as aviation, real estate, maritime services, commerce and industry. Last year, beverages was Swire’s largest revenue generator, accounting for 58% and reaching $6.8 billion.
It is known that in Vietnam, in addition to the acquisition of Swire Coca-Cola’s Coca-Cola branch, this group also has a presence in two real estate projects in Ho Chi Minh City through its subsidiary Swire Properties.