Delta moves to expand Coca-Cola franchise territory into Manicaland

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  • The company is finalising talks with TCCC
  • It is also finalising its acquisition of MBC
  • The move will give Delta total control over the Coca-Cola sparkling drink franchise in all 10 provinces of Zimbabwe  

Harare – Zimbabwe’s largest beverage manufacturer, Delta Corporation Limited say they are about to clench a deal with The Coca Cola Company (TCCC) to extend their sparkling beverages franchise territory to include Manicaland and are currently finalising the acquisition of the operating assets of Mutare Bottling Company (MBC).

This was revealed by company board chairperson, Canaan Dube, in a statement accompanying the group’s results for the half year ended 30 September 2020 in which he also stated that the move will ensure the company is at the forefront of meeting the nation’s sparkling beverage demand.

“This is a welcome development which will allow the Company to leverage on its scale and combined asset base to meet the sparkling beverages demand across the country.”

This is strategic considering the high level of competition posed by Varun beverages which manufactures sparkling drinks which Pepsi Cola, Mirinda, Mountain Dew and 7 Up for the Zimbabwean market which have impacted on the sales volumes of Coca-Cola and related products.

“The business needs to continue to recovering market share on the back of consistent product supply and competitive pricing,” the chairperson said

Currently in Zimbabwe, there are three Coca-Cola franchise businesses namely MBC, Delta and Schweppes Zimbabwe.

MBC which is currently owned by Econet Wireless (67% stake) and Northunderland Investments (33% stake) covers Manicaland province only which is the second largest market for Coca-Cola products with over 1,8 million people while Delta covers the remainder of nine provinces with Schweppes focusing on Coca-Cola non-carbonated beverages that it sells in the whole country.

The MBC Coca-Cola franchise business covers five Coca-Cola brands with over 10 flavours namely Coca-Cola, Fanta, Pine Nut, Sparletta and Sprite.

This acquisition will mean that Delta will have total control of the Coca-Cola sparkling drinks franchise in all 10 provinces.

Meanwhile, from the operations currently under their control, Delta’s sparkling beverages volume grew by 22% over last year.

Equity Axis News.

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