South African Breweries buys into Coca-Cola in Angola
1 November 2001
South African Breweries International (Africa) B.V. (“SABI (Africa)”) has announced that it has signed an agreement with The Coca-Cola Export Corporation (“TCCEC”) to purchase a 45% shareholding in Coca-Cola Bottling Luanda S.A.R.L.(“CCBL”).
The US$ 19.1 million investment, along with the existing management agreement, gives SABI (Africa) an effective controlling stake in The Coca-Cola bottling business in Angola. TCCEC retains a 10% share and the Angolan government 45%.
CCBL was formed in 1997 as a joint venture between the State of Angola (45% shareholding) and The Coca-Cola Company (55% shareholding), to provide locally bottled Coca-Cola products to Angola. The sale of the shares is in line with an agreement between The Coca-Cola Company and the State of Angola to increase local participation in the Coca-Cola business.
SABI (Africa) has managed CCBL since early 1999 and led the construction and commissioning of the new soft-drink plant at Bom Jesus, outside Luanda. CCBL produces the full range of Coke products, including Fanta and Sprite. Its installed capacity is 10 million unit cases and current sales exceed 8 million unit cases.
Andreé Parker, managing director of South African Breweries International (SABI) said: “We are extremely pleased to have secured this stake in CCBL from The Coca-Cola Company. Today’s deal is an endorsement of our ability to successfully manage and operate businesses in Africaand is in line with our strategy of seeking synergies through the development of our Coca-Cola franchises. It also consolidates our existing strong relationship with both The Coca-Cola Company and the Government of Angola”.
Notes to editors
- SABI is part of South African Breweries plc (SAB), the world’s leading brewer in developing markets, with major brewing and distribution operations in Africa, Central and Eastern Europe, and Asia. SAB is the world’s fifth largest brewer overall by volume with 86 breweries in 22 countries and over 31,000 employees.
- In the year to March 31 2001 SAB generated US$ 646 million pretax profit from a turnover of US$ 4.184 billion. SAB is listed on both the London and the Johannesburg stock exchanges.
For further information:
Mitch Ramsay, Communications Manager,
+27 (0) 11 407 1822 SABI
Mobile:+27 (0) 836 310 308
Ciaran Baker, Head of Communications
+44 (0) 20 7659 0120 SAB plc
Mobile: +44 (0) 7979 954 493
Anna Miller Salzman, Head of Investor Relations SABplc
+44 (0) 20 7659 0106
Mobile:+44 (0)7973 837 070