Coca-Cola Records $393 Million Loss in Sale of Chi Limited — What It Means for Nigeria’s Beverage Industry

Coca-Cola reports a $393 million loss from the sale of Chi Limited to UAC Nigeria Plc, signaling a major shift in its strategy for the Nigerian beverage market.

Coca-Cola’s Strategic Exit from Nigeria’s Juice and Dairy Market

The Coca-Cola Company has confirmed a $393 million impairment loss following its decision to sell Chi Limited, the well-known producer of Hollandia and Chivita beverages. The loss was disclosed in its Q3 2025 financial statement, marking the beverage giant’s strategic withdrawal from Nigeria’s competitive juice and dairy market.

According to Coca-Cola’s official investor relations report (source), the decision is part of a broader effort to streamline operations and focus on high-growth categories globally.

A Look Back: Coca-Cola’s Investment in Chi Limited

Coca-Cola first entered into a partnership with Chi Limited in 2016, when it acquired a 40% minority stake from Tropical General Investment (TGI) Group for approximately $438 million. This deal included a clause granting Coca-Cola the right to acquire full ownership within three years.

That plan was fulfilled in January 2019, when Coca-Cola completed the acquisition by purchasing the remaining 60% stake for $257 million. In total, the beverage giant invested nearly $694.5 million to gain complete control of Chi Limited.

However, just six years later, Coca-Cola decided to divest from the brand—indicating a change in strategic priorities aimed at optimizing profitability and operational efficiency.

The $393 Million Impairment Explained

The $393 million loss represents the difference between the book value of Chi Limited on Coca-Cola’s balance sheet and the actual sale price to UAC Nigeria Plc. While the sale amount remains undisclosed, financial analysts suggest it was significantly below the company’s original investment value.

This move underscores Coca-Cola’s ongoing global restructuring plan, which focuses on divesting non-core operations and investing in fast-growing segments such as energy drinks, flavored water, and low-sugar beverages.

For more insights into Coca-Cola’s global financial strategy, visit their official Investors’ Portal.

UAC Nigeria Plc Steps In: A New Era for Chi Limited

On the other side of the deal, UAC Nigeria Plc — one of Nigeria’s oldest and most diversified conglomerates — has taken over Chi Limited. UAC confirmed that it plans to raise ₦65 billion through commercial papers to partially finance the acquisition.

According to Stanbic IBTC Capital, which is acting as the lead financial arranger, UAC’s acquisition of Chi Limited reflects growing investor confidence in Nigeria’s fast-moving consumer goods (FMCG) sector.

UAC is expected to release detailed financial statements and projections regarding the Chi acquisition in its Q3 2025 financial report, which could shed more light on the brand’s future direction under its new management.

Coca-Cola’s Broader Financial Outlook

The sale of Chi Limited isn’t the only major financial adjustment for Coca-Cola in 2025. The company also plans to record a $1 billion charge tied to the partial divestment of its stake in Coca-Cola Beverages Africa (CCBA).

This move further aligns with Coca-Cola’s long-term vision of streamlining its global bottling operations, reducing costs, and focusing on core beverage innovations — such as zero-sugar drinks, sustainable packaging, and digital customer engagement.

Implications for Nigeria’s Beverage Industry

Coca-Cola’s exit from Chi Limited marks a pivotal moment for Nigeria’s beverage industry. It opens the door for local conglomerates like UAC to reclaim dominance in the juice and dairy segments, previously saturated by multinational brands.

Industry analysts predict that this could lead to:

Increased local investment in manufacturing and distribution.
Greater competition among local brands for market share.
Potential innovation in product packaging and flavor diversification.

Moreover, this transition might encourage more foreign partnerships targeting Nigeria’s growing consumer base, especially in non-alcoholic beverages.

What’s Next for Coca-Cola and Chi Limited

The sale of Chi Limited to UAC Nigeria Plc signals a strategic realignment for both parties. For Coca-Cola, it represents a shift toward global consolidation and focus on high-return markets. For UAC, it’s an opportunity to strengthen its footprint in Nigeria’s FMCG landscape and drive local growth.

As this transition unfolds, it will be worth watching how UAC revitalizes Chi Limited’s legacy brands — Hollandia, Chivita, and Capri-Sonne — under its new leadership.

For updates on similar corporate developments, visit BusinessDay or follow Coca-Cola’s official newsroom for verified announcements.

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