Not sweet: Coca-Cola, Pepsi, and RC Cola are facing sugar shortage
The Philippines three biggest cola companies, Coca-Cola Beverages Philippines, Pepsi-Cola Products Philippines, and ARC Refreshments Corporation, have begun bearing the brunt of the country's sugar shortage.
In a joint statement, the three top cola companies said that the beverage industry is facing a shortage of premium refined sugar a "key ingredient" in the products they make.
"We confirm our industry is facing a shortage of premium refined sugar, a key ingredient in many of our products," the brands said.
"We are working closely with other stakeholders of the industry and the government to address the situation."
Premium refined sugar serves is a type of high-quality white sugar that serves as a staple for food manufacturers. It is also made from the sweetest cane sugar and therefore found in many other food products such as snacks, drinks, and sweets.
Coke, Pepsi, and RC Cola have also called on their consumers to be patient with the shortage: "We thank our customers and the public for their continued support to our products and for their understanding."
The statement comes amid the country's worsening sugar shortage, with soaring inflation prices and import issues. The Philippines' 2022 projected sugar production of 1.8M metric tons was found to be 200,000 tons short of the annual demand of 2.03M metric tons met during the past three years.
President Ferdinand Bongbong Marcos Jr. has since turned down the proposal of the Sugar Regulatory Administration (SRA) to import 300,000 metric tons of sugar to the Philippines, or Sugar Order No. 4. The president called the order "illegal," saying he did not authorize the issuance of the document. Marcos Jr. is also the chairman of the Sugar Regulatory Board.
Sugar Order No.4 signatories, Hermenegildo Serafica, Roland Beltran, and Agriculture Undersecretary Leocadio Sebastian have since stepped down from their roles amid the issue.
In the meantime, Marcos Jr. said in a YouTube vlog that the country is likely to import 150,000 metric tons of sugar by October.
Meanwhile, Pepsi-Cola Products Philippines Vice Chair Rafael M. Alunan III has called for a sense of urgency on the matter, saying that the three companies will run out of the premium sugar used for bottling their cola drinks by September.
"This is a time-sensitive matter. It takes around 6 weeks to complete the process from approval to import all the way to the delivery at their respective warehouses,” Alunan said.
"There’s no time to lose. Otherwise, bottling plants will experience production downturns and labor layoffs; the government will experience lower tax collections and diminished investor confidence; consumers will be deprived of affordable soft drink supply."
Sugar isn't the only food shortage that the country has faced in the past, as there were also reported chicken and potato shortages over the year.
