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

Total revenue of $94.9 million was attained in 2016, which is greater than the $76.99 million recorded in 2012.

Volume performance for the 12 months to March 2016 was positive at 4 percent above prior year on an undiluted basis, with an increase in lower priced imports of cordials and nectars resulting from the depreciation of regional currencies against the US dollar.

Profit margins remain positive with an average of 4.4 percent and in the recent previous financial year the company recorded a profit after tax to the tune of $4.9 million.

Volume growth and benefits from price roll backs have spurred growth and the excellent financial performance has been on the back of value chain optimisation.

The locally manufactured juice drink products under the Minute Maid brand are now well rooted in the market with a market share of over 90 percent in this sub-category.

The commissioning of the new bottling line for bottled water saw the two water brands (Schweppes and Bonaqua) remain the consolidated market leaders in the category.

The termination of the TCCC agreement need not mean the death of the firm. With its vast assets accumulated over the years, the company can be innovative enough to start its own product lines, but probably under a new name.

Given the company’s reputation in the market in this category, it can successfully launch several new products. This can be supported by the Beitbridge Juicing Private Limited (BBJ), a Schweppes subsidiary which is the main supplier of juice concentrates.

Additionally, the company can as well leverage on Best Fruit Processors, which has the principal activity of manufacturing of tomato puree and paste and other fruit pastes, pulps and concentrates.

It has potential for significant exports while supplying previously imported inputs to the local market. The after tax share of profits from this associate entity amounted to $2.4 million for the year to March 2016.

Schweppes still has a future, but in which form?- The Source

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