After almost a century of operating in South Africa, Coca-Cola Co is deepening its investment in the market with a fresh R17.6 billion ($1 billion) commitment to expand capacity and distribution through 2030.
Coca-Cola, together with two local authorised bottling partners Coca-Cola Beverages South Africa and Coca-Cola Peninsula Beverages, said Tuesday it will use the new funding to “accelerate innovation.”
The drinks maker, which began bottling locally in 1928, built its footprint through a franchise system that endured through apartheid — including a period of formal divestment in the 1980s when products continued to be sold via local bottlers — before re-establishing direct control after 1994 and turning the country into a hub for its African operations.
The investment follows a broader reshaping of Coca-Cola’s African bottling network, including the creation of Coca-Cola Beverages Africa in 2016.
Five months ago, Coca-Cola HBC AG agreed to buy 75% of that business from Coca-Cola Co and Gutsche Family Investments in a deal valued at about $2.6 billion, creating the second-largest bottling partner for the company’s drinks by volume.
South Africa — the continent’s most industrialised economy — remains central to Coca-Cola’s regional strategy.
The system employs about 7 800 people directly and supports a further 79 300 jobs through suppliers and customers, according to a study by consulting firm Steward Redqueen.
The announcement was made at an investment conference where President Cyril Ramaphosa promoted South Africa as a reform-driven destination for capital, with a goal of attracting R3 trillion over the next five years.
BLOOMBERG