Yao-led Macay Holdings to diversify, expand via mergers and acquisitions    

Macay Holdings Inc., the listed investment holding firm of Ambassador Alfredo Yao, is eyeing to diversify its product offerings from carbonated drinks to other consumer products by initiating mergers and acquisitions.

 

"What we intend to do is maximise our goodwill, the distribution platform we have created through the soft drinks," Macay Holdings president Antonio Panajon told reporters after the company's stockholders' meeting in Makati City Friday.

 

"Right now, our business is mostly carbonated... We're considering the whole range of beverage products," he said.

 

Macay Holdings is the parent of ARC Refreshments Corp., which in turn owns Asiawide Refreshments Corp. and Mega Asia Corp.

 

Asiawide Refreshments has been given an exclusive license by RC Cola USA to manufacture and distribute the beverage in Southeast Asia.

 

"If you really want to expand the business, you will consider everything," Panajon said.

 

In the same event, Macay Holdings chairman Alfredo Yao said they may consider folding Zest-O Corp. under the holding company. "In the future siguro sasama namin," Yao said.

 

Zest-O is another beverage firm privately held by Yao.

 

However, Panajon clarified any move to buy Zest-O will depend on owners' approval.

 

"Ang tinitingnan is Zest-O, like any other companies we are looking at, is fair game, kung okay naman sila ma-acquire based sa negotiations and the agreement of the owner," he said.

 

Short-term, however, Macay Holdings will focus on growing the RC Cola brand in the Philippines, banking on the growing population, Panajon noted. "... Our plan is to expand the core business... I think RC is not as big as Coca-Cola. 

 

"We're looking at expansion as major source of growth, going into areas where we are not yet in, like Visayas and Mindanao," he said.

30% market share

 

Expanding toward other markets in Luzon, Visayas and Mindanao is anchored on the company's newly-constructed bottling plants in Cagayan de Oro and Pangasinan, and the capacity expansion in Davao and Cebu, ARC Refreshments Corp. executive vice president and COO Gerardo Garcia said.

 

"Right now we'd like to focus on new markets. Once we succeed there and generate funds, we expand," he added.

 

Company estimates showed RC Cola has a 30 percent Philippine market share in terms of volume, the bulk of which is concentrated in Metro Manila.

 

"That is a huge potential because if you have a growing population, so you have to grow with it," Panajon said.

 

Looking forward to the regional integration of Association of Southeast Asian Nations (ASEAN), Macay Holdings is on the lookout for joint ventures and partnerships with other beverage players in large markets, Panajon said.

 

RC Cola in the US is interested to make the Philippines its bottler in the region, he said. "As anchor bottler status, may option to expand sa region."

 

On Sept. 25, 2013, Yao-led Mazy's Capital Inc. bought an 89.75-percent interest in Maybank ATR Kim Eng Financial Corp. for P3.2 billion, as possible vehicle for listing Yao's beverage businesses.

 

Maybank ATR Kim Eng changed its corporate name into Macay Holdings in late 2013.

 

Aside from the beverage businesses, Yao also has interests in aviation through a partnership with Air Asia and in banking under Philippine Business Bank. – VS, GMA News