SABMiller and Coca-Cola are creating Africa’s largest soft drink bottling operation with annual sales of $2.9bn as they seek to tap more of the continent’s fast-growing middle class.
The deal will see them merge their bottling assets in 12 countries in south and east Africa to create a new company which will be called Coca-Cola Beverages Africa. It has the potential to transform SABMiller into Coca-Cola’s main consolidator in the continent. It will allow the brewer, which has its roots in the region, to capitalise on the rapid growth of soft drinks while beer sales volumes stagnate. More
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Coca-Cola, which is struggling to maintain sales among increasingly health-conscious populations, is under pressure to improve its financial performance and to double revenues to $200bn under chief executive Muhtar Kent’s “Vision 2020” plan.
The Atlanta-based group is encouraging its 250 bottlers around the world to consolidate with the aim of promoting efficiency and higher revenues. The current focus on Africa follows the consolidation last year of its eight bottlers in Spain and Portugal into one business.The SAB deal also furthers Coca-Cola’s diversification into other areas through a side deal that involves the US group paying SABMiller […]