Companies

Crown Beverages exits alcohol distribution deal

coke-coca

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

BDgeneric_logo

Summary

  • Crown Beverages, a subsidiary of Coca-Cola Beverages Africa (CCBA), is exiting the alcohol distribution business to focus on bottled water.
  • The firm, which sells the Keringet bottled water brand, is now winding down its distribution contract with an Italian alcohol manufacturer whose premium liquor brands it has been selling since 2018.
  • Crown Beverages signed a deal with Italy’s Campari Group for distributorship of brands such as Glen Grant Single Malt Whisky, Old Smuggler blended Scotch Whisky, Bulldog Gin, SKYY Vodka and Campari Aperitif among others.

Crown Beverages, a subsidiary of Coca-Cola Beverages Africa (CCBA), is exiting the alcohol distribution business to focus on bottled water.

The firm, which sells the Keringet bottled water brand, is now winding down its distribution contract with an Italian alcohol manufacturer whose premium liquor brands it has been selling since 2018.

Crown Beverages signed a deal with Italy’s Campari Group for distributorship of brands such as Glen Grant Single Malt Whisky, Old Smuggler blended Scotch Whisky, Bulldog Gin, SKYY Vodka and Campari Aperitif among others.

CCBA Kenya managing director Xavier Selga said Crown Beverages will now focus on the bottled water business.

Crown Beverages was acquired by CCBA after combination of bottling operations by Coca-Cola Company, SAB Miller plc and Gutsche Family Investments in July 2016.

“We are exiting that part of the businesses and are in process of depleting the stock,” Mr Selga said.

NEW OPPORTUNITY

“We have seen opportunity in non-alcohol beverages drink categories to be our core business and we can explore more of this. We have decided to focus our assets and investments into this categories.”

CCBA now plans to add dairy segment and hot beverages including tea and coffee to its products portfolio as the firm diversifies with changing consumer preferences.

Mr Selga said the firm will execute the investments either through in-house processing or through alliances with co-packers.

This will see the company invest upto $50 million (Sh5.43 billion) in the plans in the next three years and about $80 million (Sh8.69 billion) in the next five years.

The global firm, Coca-Cola Company has managed to produce dairy products in other markets like US and India.