Africa-news

Africa-news (598)

The world tourism industry barely improved last year compared to 2020, with all indicators staying way below pre-pandemic levels and industry professionals not expecting a full recovery before 2024, the World Tourism Organisation (UNWTO) said this week.

As Coca-Cola Beverages Africa (CCBA) prepares to list on the JSE this year, the company says it plans possible "consolidation" on the continent and to capitalise on strong African demand – especially for energy drinks, which is the fastest-growing drink category.

Last year, American giant The Coca-Cola Company announced that it will list its African bottling operation in Amsterdam and on the JSE this year. Bloomberg previously reported that the listing could be worth €7 billion (~R122 billion) – the same size as Shoprite.

The company hosted a "Capital Markets Day" - an online briefing for potential investors, analysts and the media – this week in preparation for its listing.

"We want to unlock what we see as a significant African growth potential for CCBA," CCBA CEO Jacques Vermeulen told the briefing. CCBA operates in 14 countries. Its six key markets are South Africa (its largest and most established market), Kenya, Ethiopia, Uganda, Mozambique and Namibia.

He sees Africa's young population and growing urbanisation on the continent as benefiting CCBA's growth trajectory, offering the  potential for increased per capita consumption, including in the categories of juice, water and energy drinks. Energy drinks is the fastest growing soft drink category in Africa.

Coca-Cola owns a stake in the world’s second-biggest energy drink brand (after Red Bull), Monster. It is also Monster’s official distributor.

CCBA is the largest bottler of non-alcoholic ready to drink beverages in Africa. It accounts for more than 40% of The Coca-Cola Company's African volumes. CCBA is also the eighth largest Coca-Cola bottler by revenue globally.

"The Coca-Cola Company has elected us as its partner to drive further consolidation on the continent and create greater cost efficiency. We will, therefore, invest in opportunities that might arise," said Vermeulen.

"Since 2019 we have been reshaping our operating model to build a better, smarter and faster world class bottler. Our end-to-end digital transformation is also well underway and will provide more consumer insights," said Vermeulen. "CCBA has a deep knowledge of doing business in Africa and we foresee significant opportunities to consolidate the continent's fragmented bottling landscape."

He says the company plans to further invest in opportunities that might arise. "For many years we have already been operating and reporting like a listed company and learnt from global best practice. We have a very strong balance sheet and can leverage that for acquisitions which fit our profile," said Vermeulen. 

CCBA CFO Norton Kingwill said that CCBA cannot continue with a strong growth trajectory without investment. "Our track record gives us confidence. We have been successful in Africa for a long time and can deliver a growth story," he concluded.

CCBA - described during the briefing as "born and bred in South Africa" – was listed on the JSE in a previous iteration, Amalgamated Beverage Industries (ABI). It was delisted in 2004, after SABMiller bought out minority shareholders. 

Then in 2016, CCBA was established after SABMiller merged ABI with the Coca-Cola Company’s Southern and East Africa bottling operations. In the following year, the US giant bought SABMiller’s 55% stake in CCBA for $3.15 billion after that company was taken over by Anheuser-Busch InBev.-fin24

In a trading update for the six months to end-December, Distell's revenue in South Africa grew by more than 20% thanks to "exceptional" growth in sales of its cider brands Savanna and Hunter’s and ready-to-drink products, including Bernini, Esprit and Klipdrift & Cola.

South Africa’s inflation rate moved closer to the top of the central bank’s target range in December, highlighting the difficult choice between taming price growth and supporting a sluggish economy policy makers will face when deciding on interest rates next week. 

Tanzania issued a call for financiers to back a new railway line linking its western town of Uvinza with Burundi’s capital Gitega on Sunday.

Microsoft Corp.’s planned acquisition of Activision Blizzard Inc. is breaking all sorts of records, even for a company that hasn’t shied away from massive deals in recent years.

CEO optimism around global economic factors is at its highest in a decade, with 77% of 4 446 CEOs surveyed predicting improving conditions while only 15% expect the economy to worsen.

Distell's shares will be suspended on the JSE on July 20 and delisted on September 6 upon the conclusion of a scheme to enable international brewer Heineken International to make a €2.2 billion (R38.53bn) offer for the liquor group.

South Africa's green hydrogen economy could get as much as €40 million (or about R700 million) in grant funding from the German government for its development.

Alphabet’s Google said it would spend US$1 billion to buy up its own London offices, keeping a major presence in the UK capital at a time when firms wrestle with how to manage employee work habits.

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