Approvals process now complete
LUSAKA, ZAMBIA – Zambian Breweries has finalised the sale of its Coca-Cola bottling business to Coca-Cola Beverages Africa (CCBA) in a move that paves the way for it to focus fully on its clear beer operations.
The transaction follows shareholder and regulatory approval and is part of Coca-Cola’s wider restructuring of its bottling and distribution business across Africa in the wake of the acquisition of Zambian Breweries’ parent company SAB Miller by AB InBev in 2016.
Under the agreement in Zambia, identified employees have all received letters of employment from CCBA’s new company, Kalundu Beverages Limited, trading as Coca-Cola Beverages Zambia, and officially transferred with the business.
“I am very pleased that throughout this process we were able to keep everyone’s jobs and believe that the new company’s focus on soft drinks with CCBA at its helm will be beneficial for the growth of the soft drinks category in Zambia,” said Zambia Breweries country director Jose Moran.
“I wish the soft drinks team and our former colleagues all the best in this new adventure. The team will of course remain our friends and we look forward to catching up from time-to-time.”
Zambian Breweries will continue to manufacture and bottle Coca-Cola soft drinks under a “co-packaging” contract with Coca-Cola Beverages Zambia (CCBZ).
CCBZ is a separate legal entity, unrelated to Zambian Breweries Plc, an ultimately owned by the Coca-Cola Company, which will now which will now distribute and market its brand.
The agreement enables Zambian Breweries to focus on its core business of producing and distributing clear beer brands including Mosi Lager, Castle, Carling Black Label, Eagle, Stella Artois, and Budweiser, added Mr Moran.