By Jim Lloyd Dongiapon
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A plant of a well-known soft drink brand located in Ulas, Davao City, has suspended its operations due to the ongoing sugar crisis in the country.
On Monday, August 22, the management of Coca-Cola Beverages Philippines, Inc. (CCBPI) Davao Plant 1 put up a tarpaulin outside their plant announcing its temporary halting of operations.
The reason stated by the plant management is the shortage of bottler’s grade sugar, which is needed to produce carbonated soft drinks.
CCBPI, together with ARC Refreshments Corporation, and Pepsi Cola Products Philippines, Inc., issued a joint statement on Tuesday last week, August 16, confirming they are experiencing a shortage of premium refined sugar, a key ingredient in their products.
The effects of which are currently felt by wholesalers, retailers, and consumers alike as there is a supply deficit of certain soft drink products due to limited production.
In a media statement, CCBPI thanked President Ferdinand “Bongbong” Marcos, Jr., who concurrently serves as the Agriculture Secretary and the Chair of the Sugar Regulatory Board, for his swift actions in addressing the shortage of premium refined sugar in the country.
The company also emphasized that the sugar they use for manufacturing beverages is not the same as the one commonly used in households.
They added that there is currently a 400,000 metric ton shortage of premium refined sugar on top of the 200,000 metric ton starting gap in the local sugar supply for this year.
This is based on the projected demand of 2.3 million metric tons of sugar in the entire country for 2022.
The planned importation of 150,000 metric tons by the government may not be enough to address the shortfall.
During their meeting with President Marcos, Jr., they also disclosed that the industry needs at least 450,000 metric tons of premium refined sugar in order to meet demands from their customers, who rely on their products for income, and run at full capacity for the remainder of the current year.
The company assured the public that they “are in the midst of implementing various efforts aimed at cushioning the business impact of the lack of premium refined sugar supply.”
“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,” CCBPI added.
Meanwhile, Press Secretary Trixie Cruz-Angeles said on Sunday, August 21, that the sugar shortage may only be “artificial” following the discovery by inspectors from the Bureau of Customs (BOC) of hoarded imported sugar in multiple warehouses in Luzon alone.
The House of Representatives began their probe last week into the issue of sugar importation in the country, while the Senate Blue Ribbon Committee is set to conduct their investigation tomorrow, August 23, according to its chair, Senator Francis Tolentino.
BOC will also conduct its own investigation into the importation and potential smuggling of sugar.