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| Sunday, 21 March 2004 |
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CCS buys Coca-Cola bottling plant in Sri Lanka Coca-Cola Sabco (Pty) Ltd. (CCS) has reached agreement with the Coca-Cola Company to purchase its company-owned bottling operation in Sri Lanka as soon as all regulatory and other consents are received. The acquisition has been approved by the boards of both organisations, and the formal deal closings are expected in the near future. 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. It is the only Africa-based 'Anchor Bottler' in the global Coca-Cola system. The organisation has been able to produce sustainable growth in volume, operating profit and Return on Capital Employed over the last five years. These results are significant in that they have been achieved in markets with very low GDP per capita. In achieving these results, the organisation has also received significant accolades for product and package quality. The CCS plant in Port Elizabeth became the first bottling plant in the world to achieve the prestigious Coca-Cola Quality System Phase III accreditation and the organisation has received numerous quality awards. The growth has also been achieved through a great emphasis on developing people and system's capability in all markets. Sri Lanka 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 $5m in Sri Lanka in the last five years. The operation directly employs over 430 employees. Patrick Siewert, Coca-Cola Group President, East and South Asia, said: "We are very excited about the opportunity to work with Coca-Cola Sabco (CCS) in Sri Lanka. As a long-term partner of the Coca-Cola Company in Africa, we have known them as a valued friend for over 60 years. Sri Lanka is an emerging market for the Coca-Cola Company making it important for the future growth of our business. The Coca-Cola Company is committed to Sri Lanka and we know that Coca-Cola Sabco's success in Sri Lanka will benefit our employees as well as extend further opportunity to our suppliers and retailers as the business grows." 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. We pride ourselves in working under challenging conditions in emerging markets and believe that Sri Lanka provides opportunities for growth for the benefit of our shareholders, employees, suppliers, customers and consumers." |
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