Coca-Cola expands African footprint with acquisition of Eswatini Beverages
30 Aug 2019 --- Coca-Cola Beverages Africa (CCBA), under The Coca-Cola Company, has announced that it has acquired a 60 percent share in the soft drinks business of Eswatini Beverages, based in Eswatini (previously known as Swaziland). The remaining 40 percent of ECCB is owned by Swazi sovereign wealth fund Tibiyo Taka Ngwane. The non-alcoholic, ready-to-drink beverage brand will be referred to as Eswatini Coca-Cola Beverages (ECCB) and will operate as a subsidiary of CCBA.
Sanele Khumalo, Country Manager of ECCB, outlines that efforts will be made to minimize any disruption to customers. She notes that ECCB has appointed Logico Unlimited as the official distributor of all Coca-Cola products in the nation of Eswatini. Logico will also be responsible for collection of monies owed, while ECCB will be responsible for the negotiations of trading terms and relationships with customers. All regulatory approvals have also been obtained.
Coca-Cola Beverages Africa is the eigth largest Coca-Cola bottling partner in the world by volume, and the largest on the continent.“Eswatini customers will benefit from being part of a consolidated, successful Coca-Cola ecosystem that spans the continent, creating new opportunities for everyone across the value chain,” says Khumalo. “Access to shared best practices will enhance efficiencies and a better distribution capability will provide pervasive availability of cold beverages to end-customers. We will also be able to respond to consumer demand more quickly.”
CCBA is the eighth largest Coca-Cola bottling partner in the world by revenue, and the largest on the continent, notes the company. The brand accounts for 40 percent of all Coca-Cola products sold in Africa by volume.
CCBA’s African footprint encompasses South Africa, Ghana, Ethiopia, Uganda, Kenya, Tanzania, Namibia, Mozambique, Comoros, Mayotte, Zambia, Botswana and now Eswatini. The group employs more than 16,000 people directly, almost half of whom are in South Africa.
“Expanding our African footprint brings huge benefits to local consumers and businesses. By leveraging scale, we can do more for our customers and also drive our sustainability goals. The creation of ECCB is another milestone in that strategy,” concludes Khumalo.
In July, The Coca-Cola Company reported robust operating results in the second quarter of 2019, driven by a strong performance of the brand’s sparkling soft drinks segment, and by new launches of Costa Coffee ready-to-drink chilled products and Coca-Cola energy drinks. Reported net revenues and organic revenues (non-GAAP) both grew 6 percent through balanced volume and price/mix, with all operating segments contributing to organic revenue growth.
By Benjamin Ferrer
