Companies

Coca-Cola now pauses new acquisitions in Kenyan market

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Coca Cola Beverages Africa MD Xavier Selga. PHOTO | SALATON NJAU | NMG

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Summary

  • Coca-Cola Beverages Africa (CCBA) will not make new acquisitions in the local market in the near term as it focuses on integrating the businesses it has bought in recent months.
  • CCBA Kenya managing director Xavier Selga has said the company is currently aligning Nairobi Bottlers and Almasi Beverages’ operations to those of the parent company’s systems and policies following its acquisition from Centum Investment Company in October last year.

Coca-Cola Beverages Africa (CCBA) will not make new acquisitions in the local market in the near term as it focuses on integrating the businesses it has bought in recent months.

CCBA Kenya managing director Xavier Selga has said the company is currently aligning Nairobi Bottlers and Almasi Beverages’ operations to those of the parent company’s systems and policies following its acquisition from Centum Investment Company in October last year.

CCBA through its subsidiary, Coca Cola Sabco East Africa Limited, acquired 53.9 percent and 27.6 percent of the stake held by Centum at Almasi and Nairobi Bottlers respectively at a value of $200 million (Sh21.6 billion).

Almasi has three subsidiaries including Mt. Kenya Bottlers, Kisii Bottlers and Rift Valley Bottlers.

The transaction also saw the company gain full ownership of NBL.

“We are in the process of consolidating all the bottlers in the country on much in the way we serve the market, approach the consumers and ensuring better optimisation of assets,” Mr Selga told the Business Daily.

“Those are heavy investments from a capital point of view and requires a lot of efforts to integrate the business. We will now focus on getting fit as an organisation before we approach further acquisitions,” he added.

Mr Selga added that the process will not lead to plant closures or staff layoffs.

The company saw a decline in sales and revenue by 50 percent for its products portfolio including carbonated soft drinks, juice, energy drinks and fuze tea bags from the onset of the pandemic.

Lockdown measures imposed by the government led to disruptions in production, supply chains and reduced demand for the products.