GABORONE, BOTSWANA, November 2018 – Africa’s largest Coca-Cola bottler, Coca-Cola Beverages Africa Proprietary Limited (CCBA), announced that it has received the requisite regulatory approval to acquire the Coca-Cola soft drinks business, Beverage Manufacturers (Botswana) (Pty) Ltd and will commence its first day of operations effective, 26 November 2018.
With this acquisition, the non-alcoholic ready-to-drink business, Beverages Manufacturers (Pty) Limited will now trade as Coca-Cola Beverages Botswana (CCBB). In terms of the sale agreement, CCBA acquires 50.1% of Beverage Manufacturers (Botswana) (Pty) Ltd. The balance of 49.9% in Beverages Manufacturers (Pty) Limited will be owned by Sechaba Brewery Holdings Ltd (Sechaba), a listed company in Botswana.
This acquisition by CCBA adds one more plant to its footprint on the continent – in the capital, Gaborone. CCBA bottles and distributes beverages whose trademarks are owned by The Coca-Cola Company (TCCC) or TCCC’s affiliated entities and is the world’s 8th largest Coca-Cola bottler by revenue. Including the Botswana acquisition, CCBA now has over 15 000 employees across its operations in Africa with 31 bottling plants in 11 countries. There will be no retrenchments as a result of the merger in Botswana and the shareholder terms will be maintained.
Commenting on the transaction, CCBA International Division managing director, Jacques Vermeulen said, “The acquisition makes perfect sense both for us and for consumers in Botswana. We see a compelling long-term growth opportunity for non-alcoholic ready-to-drink beverages in Botswana.
“This acquisition of Beverages Manufacturers (Pty) Limited will allow us to share best practices and improve our service for both the formal and informal markets and at the same time, accelerate innovation. It will also allow us to achieve enhanced efficiencies which, in turn, will mean an improved and more seamless service for customers,” said Vermeulen.
The creation of CCBA in 2016 was designed to advance a consolidated, more successful Coca-Cola system in Africa and create more shared opportunities for the business and communities served across the value-chain, including local suppliers and retailers.
Said Norton Kingwill, the newly-appointed managing director for CCBA’s Southern Africa region which includes Namibia and now Botswana: “CCBA’s aim remains to drive long-term sustainable growth, leverage our scale and build capabilities to accelerate sustainable growth. We believe this acquisition aligns very well with that ambition.”