Coca-Cola Beverages Africa (CCBA) has acquired a 60% share in the soft drinks business of Eswatini Beverages. Sovereign wealth fund Tibiyo TakaNgwane owns the remaining 40% of the non-alcoholic ready-to-drink business. The deal was signed on 5 October 2018, and all the necessary regulatory approvals have been obtained.
Based in the southern African nation of Eswatini, formerly known as Swaziland, the business will be referred to as Eswatini Coca-Cola Beverages (ECCB) moving forward, and will operate as a subsidiary of CCBA.
Sanele Khumalo, country manager of ECCB, has commented that every effort will be made to minimise any disruption to customers.
“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,” Khumalo said. “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.”
ECCB has appointed Logico Unlimited as the official distributor of all Coca-Cola products in Eswatini, responsible for the collection of monies owed, while ECCB will be responsible for the negotiations of trading terms and relationships with customers.
This move follows the news earlier this year that the Coca-Cola Company will maintain its majority stake in CCBA for the foreseeable future, despite previously announcing its intention to refranchise the African bottler.
CCBA was formed in 2016 through the combination of the African non-alcoholic ready-to-drink bottling interests of SABMiller, The Coca-Cola Company and Gutsche Family Investments. AB InBev later acquired SABMiller and reached an agreement to transition AB InBev’s 54.5% equity stake in CCBA to Coca-Cola.
CCBA’s African footprint now encompasses 13 countries, and accounts for 40 percent of all Coca-Cola products sold in Africa by volume.
© FoodBev Media Ltd 2024
