The Coca-Cola Company and two bottlers are planning to invest R17.6bn ($1.05bn) into operations in South Africa between now and 2030.
Coca-Cola is making the cash injection alongside bottlers Coca-Cola Beverages South Africa (CCBSA) – a subsidiary of Coca-Cola Beverages Africa – and Coca-Cola Peninsula Beverages (CCPB).
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A statement yesterday (31 March) from Coca-Cola and the bottlers said the money will be used to “support expanded production capacity, bolster distribution and “accelerate innovation” throughout “the Coca-Cola system’s value chain”.
Just Drinks has contacted Coca-Cola Co.’s business in South Africa for further details on how it plans to use the investment. CCBSA and CCPB have also been approached for more information.
The statement added the move underpins “Coca-Cola’s confidence in the South African market and its long-term economic prospects”.
Speaking at the South Africa Investment Conference in Johannesburg, where the news was announced, Luis Felipe Avellar, the president of Coca-Cola’s Africa operating unit, said: “Our R17.6bn investment reflects our strong belief in South Africa’s potential and our commitment to growing alongside the communities we serve. We hire locally, produce locally, distribute locally and, where possible, source locally, helping to build a stronger, more integrated economy in South Africa.”
According to the Coca-Cola Beverages Africa website, the brands it sells in South Africa include Sprite, Fanta and Twist.
CCPB employs more than 1,300 people and is headquartered near Cape Town, its website states. It manufactures and distributes Coca-Cola brands across South Africa’s Western and Northern Cape.
In October, Coca-Cola HBC struck a deal to acquire a majority stake in Coca-Cola Beverages Africa.
The transaction, expected to close by the end of this year, will see Coca-Cola HBC buy a combined 75% of Coca-Cola Beverages Africa from The Coca-Cola Co. and Gutsche Family Investments for $2.6bn.
Coca-Cola HBC said at the time the acquisition would “materially expand” its presence in Africa.
While the group already has operations in Egypt and Nigeria. The deal will see Coca-Cola HBC enter 14 more markets in Africa, including Ethiopia, Kenya and South Africa.
