Coca-Cola Co (NYSE:KO) Join Hands With SABMiller plc (LON:SAB) To Conquer the African Market


The Coca-Cola Co (NYSE:KO) has entered into a deal with SABMiller plc (LON:SAB) to produce ‘The Coca-Cola Co (NYSE:KO) Beverages Africa’. Both the companies have joined hands to rope in The Coca-Cola Co (NYSE:KO) Sabco which will make the packaging for the beverages. The Coca-Cola Co (NYSE:KO) Beverages Africa will be the 10th largest bottler in the world, the first of its kind in Africa. SABMiller plc (LON:SAB) will hold the majority stakes, worth 57 percent, while The Coca-Cola Co (NYSE:KO) will hold 11.3 percent. The rest of the money will be put up by Gutsche Family Investments.

The Coca-Cola Co (NYSE:KO) Beverages Africa will offer broader variety, better value and greater choice to the consumers. The beverage will be sold in 12 countries and the company will employ 14,000 people for 30 plants, which will cost 2.3 billion dollars. SABMiller plc (LON:SAB) being the second largest brewing company will be able to get its hands on soft drinks and non alcoholic beverages. The company will remain associated with The Coca-Cola Co (NYSE:KO) in El Salvador and Honduras.

The Coca-Cola Co (NYSE:KO) will be acquiring SABMiller plc (LON:SAB)’s Appletiser brand for a whopping $260 million. It will also gain licensing rights to SABMiller plc (LON:SAB)’s other non alcoholic drinks. Basically, these companies will help each other to form a nexus and create a dominion in Africa, which will spread globally with the passage of time.

Executives of these companies assured that the impact created by the nexus formed between The Coca-Cola Co (NYSE:KO) and SABMiller plc (LON:SAB) will be significant. The world is quite fond of soft drinks, and these two companies will use that leverage to push growth. This deal with The Coca-Cola Co (NYSE:KO) Sabco will enable this union to appeal to the total market in Africa. Africa will become a breeding ground for large revenue and development. As far as The Coca-Cola Co (NYSE:KO) and SABMiller plc (LON:SAB) are concerned, both of these companies are enjoying mutual benefits as both have a rich history in this market.

The management of these companies stated that they are very excited about the whole operation and the teams are committed for an excellent outcome.

Sabco’s culture, integrated with new partners will bring a revolutionary change in the world of beverages. The companies involved in the operation are rich in resources, with capability to carry out the whole project successfully. The Coca-Cola Co (NYSE:KO) beverages will start producing and distributing in South Africa, Kenya, Ethiopia, Tanzania, Uganda and many other African countries. This is just the beginning.

The Coca-Cola Co (NYSE:KO) is already a renowned name in the world of beverages and with this deal, the company is expected to grow even further, in terms of revenue, sales and global expansion. The Coca-Cola Co (NYSE:KO)’s dominion has spread over all continents; Africa will be no exception now. The region has a lot to offer on various fronts of the business. If the company keeps a check on prices, a lot of business can be generated.