Counting Beans

Coca Cola made a substantial step in pursuing its product diversification strategy with the recent agreement to acquire initial minority equity shareholding in Chi Ltd., a Nigeria based leading dairy and juice company. Coca Cola has made an initial 40% investment, it intends to increase its holding to 100% in three years, pending regulatory approval. This investment brings new products as well as an increased presence in Africa. Chi Ltd is the leader in the juice industry in Africa. This purchase aligns with Coca Cola’s strategy to diversify into healthier beverages as consumers become more health conscious and the sales of carbonated soft drinks decline.