Beverage giant Coca-Cola Beverages Philippines Inc. on Saturday said the bottling industry needs about 450,000 metric tons of premium refined sugar.
Coca-Cola Philippines issued the statement after President Ferdinand Marcos Jr. said the government will likely import 150,000 metric tons of sugar to address the shortfall in local supply—or only half of the 300,000 metric tons contained in an unauthorized order signed by former members of the Sugar Regulatory Administration board.
“We would like to thank President Ferdinand Marcos Jr., concurrently the head of the Department of Agriculture and chairman of the Sugar Regulatory Administration, for his immediate action in addressing the current shortage of premium refined sugar in the Philippines. We’d like to emphasize, however, that not all sugar is the same,” the beverage firm said.
“Food and beverage manufacturers need premium refined sugar to maintain high-quality products. This type of sugar is not the same sugar that is commonly used in households,” it added.
Coca-Cola Philippines said there is a 400,000 metric ton gap on top of a starting gap of 200,000 metric tons of softdrink… the local sugar supply for 2022, based on a projected demand of 2.3 million metric tons for the entire country this year.
“We have shared with the President that the industry needs at least 450,000 MT of premium refined bottler grade sugar to utilize 100 percent 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,” it said.
Meanwhile, in the House of Representatives, a lawmaker on Saturday sought to have separate importation orders for the beverage industry so as not to affect the price of sugar in the local market, which has ballooned to about P100 per kilo.
San Jose del Monte City Rep. Florida Robes, chairperson of the House committee on good government and public accountability, noted that imported refined sugar for the beverage industry accounts for more than 50 percent of the country’s consumption.
Robes’ panel will hold a hearing on the sugar importation mess together with the Committee on Agriculture and Food today (Monday), with former Agriculture Secretary William Dar as one of the resource persons.
“Since the beverage industry is consuming more sugar, it is also contributing to the consolidated demand for the country, hence the high cost of sugar in the retail market. Under the proposed scheme, the SRA will be mandated to issue separate importation orders for the beverage industry and for local consumers so that these will not affect inflation,” Robes said.
“We have to ensure that the country has enough supply of sugar in the market but this importation must protect sugar planters, millers and consumers as well to prevent any price spikes in the market. We also have to ensure that the measure should prevent smuggling in the process,” she added.
Robes said the joint committees have also invited former SRA administrator Herminigildo Serafica and former SRA board member Roland Beltran, as well as DA Undersecretary Leocadio Sebastian—three of four signatories to the controversial Sugar Order No. 4—to today’s briefing.