Financial Times

South African Coke bottler to acquire Colombo plant

Coca-Cola Sabco (Pty) Ltd (CCS) has reached an agreement with The Coca-Cola Company to purchase its bottling facility in Sri Lanka as soon as all regulatory and other consent are received, the company said.

CCS, a Coca-Cola bottling partner currently based in Southern and East Africa, will take ownership of the bottling operation in Sri Lanka on formal closings. The Coca-Cola Company, through its subsidiaries, will continue to run this plant until the formal closings occur.

Coca-Cola Sabco has been The Coca-Cola Company's valued bottling partner in Africa for more than 60 years and, during this time, has established itself as a business that can grow successfully in challenging environments. The company currently operates in seven Southern and East African countries, and employs more than 7,000 people. It currently operates 21 bottling plants and aims to fulfil the refreshment needs of the more than 156 million consumers who live in its markets.

Sri Lanka, the statement said, represents a considerable opportunity with a young population and low per capita consumption rates for Carbonated Soft Drinks.

The Coca-Cola Company has invested over $5 million in Sri Lanka in the last five years. The operation directly employs over 430 employees.

Martin Jansen, Coca-Cola Sabco's Chief Executive Officer said: "We are delighted to be running our first business in Asia in conjunction with The Coca Cola Company and particularly delighted that this acquisition brings us to a very dynamic country. "

Vikas Chawla, Country Manager of Coca-Cola Beverages Sri Lanka Limited said: "We are looking forward to optimize on the wealth of bottling know-how and experience that CCS brings.

We have a capable, young and committed management team, which is excited about the prospect of working with CCS and will continue to focus on building the Coca-Cola business in Sri Lanka."

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