Coca-Cola to divest Chivita|Hollandia to UAC of Nigeria as part of asset-light strategy 

NIGERIA – The Coca-Cola Company has reached an agreement to divest its entire stake in Chivita|Hollandia (CHI Limited) to UAC of Nigeria PLC, one of Nigeria’s longest-standing conglomerates.  

CHI Limited, a key player in Nigeria’s food and beverage sector, owns the widely recognised Hollandia and Chivita brands, which are market leaders in evaporated milk, drinking yoghurt, and fruit juices. 

The transaction remains subject to regulatory approval, and financial terms were not disclosed.  

Coca-Cola acquired an initial 40% stake in CHI Limited in 2016 from Tropical General Investments Group (TGI Group) for approximately US$240 million. In 2019, it acquired the remaining 60% stake, taking full ownership of the business. 

According to Coca-Cola, the move aligns with its global asset-light strategy, which focuses on investing in brands with the highest potential for scale and growth while reducing ownership of capital-intensive operations.  

The company noted that despite originally intending to expand the Chivita brand across West Africa, the sale reflects a shift in strategic priorities. 

UAC of Nigeria’s Group Managing Director, Fola Aiyesimoju, welcomed the acquisition, highlighting the growth potential of the Chivita|Hollandia brands and reaffirming the company’s commitment to supporting local industry development.  

“This acquisition presents significant potential to build on Chivita|Hollandia’s (CHI Limited’s) legacy of excellence and innovation. I would like to thank the management and staff of Chivita|Hollandia (CHI Limited) and look forward to working with the team to support the next phase of growth,” he said. 

CHI Limited’s Managing Director, Eelco Weber, acknowledged the brand’s category leadership and the team’s achievements in strengthening the business over recent years.  

“I would like to thank our over 5,000 employees for their hard work and dedication in bringing our business forward and earning us recognition as a Gold-rated Great Place to Work,” Weber said. 

Coca-Cola confirmed that its brands will continue to be bottled in Nigeria by Coca-Cola HBC, its anchor bottler in the region, in which it holds a 23.2% stake.  

The company recently pledged to invest US$1 billion in Nigeria over the next five years, contingent on continued regulatory support and a stable operating environment. 

The sale represents a change in strategy and is reflective of the challenges that FMCG companies in Nigeria have faced with the devaluation of the Naira, the erosion of consumer buying power and ongoing problems with access to fx. 

In August 2021 South African FMCG manufacturer finalised a deal to sell its 49% stake in its joint venture UAC Foods (UACF) to UAC of Nigeria. UAC of Nigeria has interests in paint (with Dulux), logistics, real estate, animal feed as well as QSR/fast food restaurants and FMCG.  

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