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Beerworkers Archive


Post date: 11/28/2014 - 16:57

SABMiller and Coca-Cola’s mega merger to form joint bottling venture in Africa

The Coca-Cola Company, SABMiller plc and Gutsche Family Investments (GFI, majority shareholders in Coca-Cola Sabco) have agreed to combine the bottling operations of their non-alcoholic ready-to-drink beverages businesses in Southern and East Africa.

The new company will be the largest Coca-Cola bottler in Africa, and it will be the 10th largest globally. It will operate in 12 African countries, with market leadership positions in most and will account for approximately 40% of Coca-Cola volumes in Africa.

The Coca-Cola Company, SABMiller plc and Gutsche Family Investments (GFI, majority shareholders in Coca-Cola Sabco) have agreed to combine the bottling operations of their non-alcoholic ready-to-drink beverages businesses in Southern and East Africa.

The new company will be the largest Coca-Cola bottler in Africa, and it will be the 10th largest globally. It will operate in 12 African countries, with market leadership positions in most and will account for approximately 40% of Coca-Cola volumes in Africa.

• Bottling operations in 12 high-growth markets across Southern and East Africa with pro forma annual revenue of US$2.9bn and volume of 729 million unit cases (41 million hectolitres)
• Largest Coca-Cola bottler in Africa and 10th largest worldwide
• Intended headquarters in South Africa, Coca-Cola Beverages Africa’s largest market

With more than 30 bottling plants and over 14,000 employees, Coca-Cola Beverages Africa will be the largest Coca-Cola bottler on the continent.

On full completion of the proposed merger, shareholdings in Coca-Cola Beverages Africa will be SABMiller: 57.0%, Gutsche Family Investments: 31.7% and The Coca-Cola Company: 11.3%.
As part of the transaction, SABMiller will sell its global non-alcoholic ready-to-drink brand (NARTD), Appletiser (water, apple concentrate, CO2) to Coke and license the latter rights to 19 further NARDT brands in Africa and Latin America for $260m in cash.

Initially, Coca-Cola Beverages Africa will produce and distribute Coke-branded beverages in South Africa, Kenya, Ethiopia, Mozambique, Tanzania, Uganda, Namibia, Comoros and Mayotte, with Swaziland, Botswana and Zambia expected additions at a later date.

The IUF is concerned that this deal to combine non-alcoholic bottling operations in Southern and East Africa might lead to organizational change and restructuring. We would like to urge affiliates in Africa region that are organized in Coca-Cola and SABMiller to inform us of any changes or effects on the employment or unions' positions that will be caused by this mega merger of operations. Please send the relevant information to [email protected]