Style Living Self Celebrity Geeky News and Views
In the Paper BrandedUp Hello! Create with us Privacy Policy

Coca-Cola Philippines bottling plants operations hit by sugar shortage

By AYIE LICSI Published Aug 24, 2022 8:36 pm

Coca-Cola Beverages Philippines Inc. (CCBPI) confirmed that operations at some of its bottling plants have been disrupted due to the ongoing sugar shortage in the country.

The company released a statement on Aug. 24 about the effects of the shortage, a week after it issued a joint announcement with other soda giants Pepsi-Cola Products Philippines and ARC Refreshments Corporation.

"CCBPI confirms that the supply shortage of Bottler's Grade sugar has affected the capability of some of our bottling plants to continue producing some products," it said.

The soda maker added that it is working with the government and the broader sugar industry sector to cope with the situation. "We are doing everything we can to minimize supply disruption and the impact of supply shortage to our bottling operations."

On Aug. 20, CCBPI said that the industry needs 450,000 metric tons of premium sugar to resume factory operations.

CCBPI Corporate and Regulatory Affairs director Juan Lorenzo Tañada told GMA News that the company will do its "best" to not lay off employees amid the slow production.

He also added that they do not want to resort to using high-fructose corn syrup, which has a higher excise tax of P12 per liter, over premium sugar, which has an excise tax of P6.

A sugar import mess made the headlines the past week, as Sugar Order No. 4 (SO4), which would authorize the importation of 300,000 metric tons of sugar, was later deemed "illegal." 

Former Agriculture undersecretary Leocadio Sebastian admitted that he signed SO4 without the express approval of President Ferdinand Marcos Jr., who is currently serving as agriculture chief.

Sebastian and Sugar Regulatory Administration (SRA) head Hermenegildo Serafica have stepped down from their posts amid the fiasco.

During the Senate probe, Sen. Miguel Zubiri argued whether there is a sugar shortage, citing data from the SRA showing there was still a reserve of 120,000 tons of sugar in warehouses. Sebastian still insisted on the shortage, as the deficit is already at 319,000 metric tons until December.