Coca Cola To Inject USD 1 Bn In Its African Business
Bruno Pietracci, the president of the Southern and East Africa business unit of the Coca-Cola Company has revealed that the company will be investing USD 1 Bn (ZAR 14.9 ) in its operations across Southern and East Africa.
The company plans to spend the investment in introducing new products into the market, capacity expansion, innovations and supporting the firm’s brands.
Pietracci spoke at the ongoing World Economic Forum on Africa summit where he disclosed that the Southern and East Africa region is one of the top 10 regions for the group globally both in volume size and profit.
“Coca-Cola believes Africa will be a very important growth engine for the group in the next five to ten years,” both for the sparkling and clear drink markets.
He further noted that the market still holds potential for the company’s growth.
The business has been extending its presence in frontier markets, as it battles slowing soda sales in the developed world.
Rising local brands, growing focus on healthy lifestyles and tough government policies have led to underperformance in the company. In a move to counter the downward trend in performance, the company announced it is investing USD 17 Bn in Africa between 2010 and 2020.
The company has been increasing footprint across Africa as it continues to expand its markets. Early this year, it acquired Nigeria’s largest juice and dairy company, Chi Limited. The acquisition of Chi Limited is anticipated will position Coca-Cola better in the strongly competitive Nigerian market where the brand has seen its dominance challenged by other local brands.
The company also recently made known it has acquired a majority stake in the soft drinks business of Eswatini Beverages Limited.
Featured Image Courtesy: Financial times