What’s next for Schweppes if Coca-Cola leaves?


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schweppes

Schweppes Zimbabwe Limited , a manufacturer and distributor of non-carbonated, still beverages under licence from The Coca-Cola Company faces a dire future if TCCC follows through on intentions to terminate their bottlers agreement.

The company is 49 percent owned by Delta Corporation while Whaterton Investments owns the remaining 51 percent (20 percent Management and 31 percent employee share trust).

Coca-Cola acquired Schweppes in 2001 as part of its global acquisition of Cadbury Schweppes internationals beverage brands.

The Zimbabwe unit’s product portfolio includes cordials, fruit juices, bottled water and flavoured drinks. These products are marketed under well renowned brand names: Mazoe, Minute Maid and Schweppes Water.

Under Mazoe there is the well-known Mazoe orange crush and other Mazoe Syrups which are available in Blackberry, Cream Soda, Raspberry and Peach flavours.

The fruit juices consist of Minute Maid juice, Minute Maid pulpy and Minute Maid Tetra.

Additionally, the bottled water product has two brands which are the Schweppes and Bonaqua.

The company currently has six operational sites in Harare, Bulawayo, Chinhoyi, Kwekwe, Mutare and Masvingo.

The operations in Kwekwe, Chinhoyi, Masvingo and Mutare are depots with warehouse and distribution services.

Manufacturing is undertaken at the two branches of Harare and Bulawayo.

The decision by Coca Cola to terminate that Bottlers Agreement will have a material impact on the business performance of Schweppes since it entire product line is for Coca-Cola products.

The company’s total assets have increased over the period from 2012 to date driven by expansion projects undertaken by the company as it seeks to exploit business opportunities and deliver value to its customers.

Some of the expansion initiatives include the commissioning of bottling line and acquiring of 70 percent stake in Best Fruit Processors (Private) Limited (BFP) in 2015.

The company’s revenue had a consistent upward trend since 2012, reflecting the efforts by the company to increase volumes even though the prices remain depressed in view of the stiff competition in the sector.

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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