After reports of the suspension of its operations circulated online on Monday, the Coca-Cola Beverages Philippines, Inc. (CCBPI) plant in Ulas, Davao City resumed operations on Tuesday.
On Monday, a tarpaulin outside the said plant announced that the plant temporarily suspending its operations due to the ongoing sugar crisis.
Sugar is a key ingredient in the products of soda companies.
Recently, Coca-Cola Beverages Philippines, Pepsi-Cola Products Philippines, and ARC Refreshments Corporation were reported announcing that the industry is facing a shortage of premium refined sugar or bottlers’ grade sugar.
In a statement shared to Edge Davao, CCBPI admitted that it is one of the many companies in the food and beverage industry that is also currently experiencing difficulties as the country faces a shortage in sugar supply.
The company stated that currently, there is approximately a 400,000 metric ton gap on top of a starting gap of 200,000 metric tons of the local sugar supply for 2022 and this is based on a projected demand of 2.3 million metric tons for 2022 for the entire country.
CCBPI emphasized, however, that not all sugar is the same. It said food and beverage manufacturers need premium refined sugar to maintain high-quality products and this type of sugar is not the same sugar that is commonly used in households.
It also stated that along with many other companies in the Philippine food and beverage industry beset by the difficulties brought on by the sugar shortage, CCBPI is implementing various efforts aimed at cushioning the business impact of the lack of premium refined sugar supply.
“As always, we are keeping our consumers, customers, and our people front and center,” it said.
Meanwhile, the company thanked President Ferdinand Marcos Jr., concurrently the head of the Department of Agriculture (DA) and chair of the Sugar Regulatory Administration, for his immediate action in addressing the current shortage of premium refined sugar in the Philippines.
Marcos was reported looking at getting concessions from traders to bring down prices of sugar as well as allowing food manufacturers to do direct importation with the approval of the Sugar Regulatory Administration.
“We have shared with the President that the industry needs at least 450k MT of premium refined bottler grade sugar to utilize 100% of its manufacturing capacity for the balance of the year and serve the orders of customers who are depending on our products for their sales and income. We and the broader industry look forward to continuing to work with the President and all relevant government offices to address the situation and deliver a sustainable solution as we get back to delivering our full line-up of beverages and supporting the country’s economic recovery,” it said.
