Coca-Cola to Sell Beverage Maker CHI to UAC of Nigeria
TLDR
- The Coca-Cola Company has agreed to sell Chivita|Hollandia (CHI Limited) to UAC of Nigeria PLC, marking a major shift in Nigeria’s juice and dairy sector
- The transaction, announced Wednesday, is subject to regulatory approval and will transfer one of the country’s top beverage portfolios to one of its largest consumer goods companies
- CHI Limited is known for its flagship brands Chivita and Hollandia, which hold leading market shares in fruit juice, evaporated milk, and drinking yoghurt categories
The Coca-Cola Company has agreed to sell Chivita|Hollandia (CHI Limited) to UAC of Nigeria PLC, marking a major shift in Nigeria’s juice and dairy sector. The transaction, announced Wednesday, is subject to regulatory approval and will transfer one of the country’s top beverage portfolios to one of its largest consumer goods companies.
CHI Limited is known for its flagship brands Chivita and Hollandia, which hold leading market shares in fruit juice, evaporated milk, and drinking yoghurt categories. Coca-Cola, which acquired full ownership of the company in 2019, said the divestment aligns with its global strategy to operate an asset-light model and focus on high-growth brands.
UAC said the acquisition expands its footprint in the beverage sector and builds on its existing manufacturing and distribution infrastructure. Citi advised Coca-Cola on the deal, while UAC was represented by Fasken Martineau LLP and Templars.
Coca-Cola reaffirmed its long-term commitment to Nigeria, including a previously announced $1 billion investment plan, dependent on continued policy stability.
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Key Takeaways
Coca-Cola’s sale of CHI Limited to UAC reflects a growing trend among global multinationals to streamline operations and prioritize scalable, core brands. The move supports Coca-Cola’s broader asset-light strategy, especially in emerging markets where managing operational complexity can dilute margins. For UAC, the acquisition is a strategic entry into Nigeria’s high-volume beverage space. With CHI’s established consumer base, 5,000-strong workforce, and brand equity, UAC now gains control of dominant players in fruit juice and dairy segments with resilient demand across socioeconomic classes. The deal could also reshape Nigeria’s fast-moving consumer goods (FMCG) landscape by consolidating manufacturing, distribution, and retail strengths under UAC. Execution will be critical: maintaining CHI’s operational efficiency and market leadership while integrating into UAC’s broader portfolio. It also sends a broader signal to investors about Coca-Cola’s evolving footprint in Africa—retaining brand presence while divesting capital-heavy operations, a model it may replicate elsewhere on the continent.
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