A Filipino Company Has Acquired the Global Licensing Rights to RC Cola for P1.2 Billion

ILLUSTRATOR WARREN ESPEJO

Listed Macay Holdings Inc. is acquiring RC Global Beverages Inc. (RCGBI), a company headquartered in the British Virgin Islands that holds the global licensing rights to the popular softdrink RC Cola and other beverage brands in over 100 countries, the company announced on Wednesday. 

A unit of Mazy’s Capital, which is the majority shareholder of Macay, RCGBI develops flavors and provides concentrates for customers in different countries. It currently has an unaudited asset value of $56 million, according to the company’s disclosure to the Philippine Stock Exchange.

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Macay will shell out $21 million (about P1.2 billion) in cash to acquire RCGBI and will assume the company’s net debt in the amount of $26 million (P1.49 billion). There will also be a purchase price adjustment depending on RCGBI’s net earnings performance for the year 2022. 

Macay already owns ARC Refreshments Corp, which bottles, distributes, markets, and sells beverage brands like RC Cola, RC Cola No Sugar, Fruit Soda Orange, Juicy Lemon, Arcy's Rootbeer, Seetrus, and Rite-N-Lite in the Philippines. ARC also manufactures and bottles Extra Joss for Asiawide Kalbe Philippines, Inc. The company operates nine production facilities in various locations throughout the country.

Macay also owns ARC Holdings, Inc., which it acquired in 2014 and that serves as an investment holding company and has a concentrate supply agreement and trademark licensing agreement with Royal Crown Cola International; and Artemisplus Express, Inc., that operates cafeterias, canteens, institutional dietary kitchens, refreshment parlors, and catering enterprise under the trade name Kitchen City. 

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“Macay Holdings has been in the last few years looking at various opportunities in the food and beverage sector to expand our portfolio, and pursue growth opportunities in this space,” said Macay President Antonio Panajon. “We acquired Kitchen City in 2020 and that allowed us to enter the institutional customer space and cross sell our other products.

“This acquisition allows us to expand geographically and provide diversification and increased opportunities,” he added. “The RC Cola brand is an iconic 117-year-old brand and will allow Macay to establish cross border relationships with different F&B companies in other countries, potentially leading to substantial opportunities in our current product offerings and offshore partnerships."

Macay Holdings, Inc., which was formerly known as Maybank ATR Kim Eng Financial Corporation (MAKE), was incorporated on October 16, 1930 as an investment holding company focused primarily on financial services. Today it serves as an investment holding company while the subsidiaries handle the day-to-day operations of the business.

Introduced in 1905, RC Cola was formerly known by its full name Royal Crown and was developed by a pharmacist named Claud Hatcher in Columbus, Georgia, U.S.A. It is now sold in many countries worldwide.

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Paul John Caña
Associate Editor, Esquire Philippines
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