Coca-cola Africa rolls out in Malawi

C

oca-Cola Beverages Africa (CCBA) has rolled out its operations in Malawi with an assurance of improved and continued supply of soft drinks as well as a diversified product portfolio.

The development, which came into effect last Monday, follows the closing of the deal with Castel Malawi’s Southern Bottlers (Sobo) Limited to acquire its soft drinks business through CCBA subsidiary Coca-Cola Beverages Limited.

Speaking during a news conference in Blantyre yesterday, CCBA managing director Seutloadi Thaanyane, who could not disclose how much the company has invested in the deal, said the investment is a long-term growth opportunity for Malawi that will benefit its business as well as consumers.

He said: “Following all the legal requirements as prescribed by the country, we are pleased to enter the Malawi market to use the experience we have gathered in the other countries we operate in to bring the best on the Malawi market.

“We have a short to long-term policy, but our immediate challenge is to start producing and stabilising the business in line with our strategy.”

Thaanyane said they will bring the right brands and packs in line with the consumer demand, adding that they have strategies in place to ensure that their  brands reach  every part of the country.

He allayed job loss fears, saying the company has no intention to lay off any of its employees.

“We have managed to transfer everybody that came from our predecessor and ensured that their payment structures improve or remain the same in some instances. Nobody will lose a job,” he said. 

According to Thaanyane,  CCBA  will have its head office in Lilongwe while Blantyre and Lilongwe plants will serve as production, distribution and logistics sites for the firm.

Consumers Association of Malawi (Cama) executive director John Kapito in an interview yesterday welcomed the development, saying expectations are high from consumers to see continued and improved supply of soft drinks on the market.

He said: “We are happy to see CCBA enter the Malawi market, a firm which has vast experience in the manufacturing of soft drinks.

“We expect to see challenges previously encountered by consumers, specifically rusty bottles and even contaminated drinks addressed.”

Kapito said Cama will support the firm and they expect that they will retain and bring more drinks on the market.

Castel Malawi sold the soft drink business in line with its strategy to focus on alcoholic beverages business.

The company’s managing director Herve Milhade is quoted as  having justified the deal, saying it is a good opportunity for the country as the CCBA group has a strong track record on the continent and is committed to sustainable growth where it operates.

The CCBA group currently operates in 14 countries, including its six key markets of South Africa, Kenya, Ethiopia, Uganda, Mozambique and Namibia, as well as Tanzania, Botswana, Ghana, Zambia, the islands of Comoros and Mayotte, Eswatini, Lesotho and Malawi.

With over 17 000 employees in Africa, the CCBA group services about 600 000 outlets with a host of Coca-Cola beverages bearing international and local brands.

Locally, Sobo produces water and soft drinks for the retail market. It also owns the Coca-Cola franchise in Malawi, which enables it to bottle drinks such as Coca-Cola, Fanta and Sprite.

CCBA is the eighth largest Coca-Cola bottling partner worldwide by revenue and is the biggest on the continent, accounting for about 40 percent of all Coca-Cola volumes sold in Africa.