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SABMiller, Coca-Cola, GFI to create African bottler
SABMiller, Coca-Cola, GFI to create African bottler

SABMiller, Coca-Cola, GFI to create African bottler

MARKETING NEWS

bdlive.co.za - Nov 28th 2014, 10:07

London — SABMiller, The Coca-Cola Company and Gutsche Family Investments (GFI) are combining their soft drinks bottling operations in South and East Africa to create a group with $2.9bn in revenue across 12 fast-growing markets. 

The new company, which will be headquartered in SA, will be 57%-owned by the brewer, 31.7% by GFI, which is the majority owner of Coca-Cola Sabco, and 11.3% owned by The Coca-Cola Company, the groups said on Thursday.

As part of the deal, Coca-Cola will also acquire SABMiller’s sparkling soft drink Appletiser brands globally, and buy or be licensed for a further 19 non-alcoholic names in Africa and Latin America for about $260 million.

"The opportunity is significant, with favourable demographics and economic development pointing to excellent growth prospects," said Alan Clark, SABMiller CE.

"This also signifies a strengthening of our strategic relationship with The Coca-Cola Company."
Management consultancy McKinsey says that Africa’s consumer spending on shopping, banking, telecoms, and tourism could grow to $978bn by 2020, from $570bn in 2010.

The new firm, Coca-Cola Beverages Africa, will have more than 30 bottling plants when the deal is completed, bringing together brands such as Appletiser and spring water Valpre in countries such as South Africa, Kenya, Ethiopia, Mozambique and Tanzania.

Others are Uganda, Namibia, Comoros, and Mayotte. Later, operations in Swaziland, Botswana, and Zambia will be included in the transaction.

Nomura and NLA advised Coca-Cola Sabco and Rothschild advised SABMiller on the deal. From DFM Publishers (Pty) Ltd 

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