- Coca-Cola Beverages Africa launched a $70M new juice line at its Kenya plant
- The investment is projected to positively impact 30,000 farmers
Coca-Cola Beverages Africa (CCBA), a subsidiary of the Coca-Cola Company (KO +0.19%) launched a $70 million new juice line at its Kenya plant. The line will process 28,000 bottles per hour. What does this investment signal about Coca-Cola’s business in East Africa?
Why This Matters: The company projects its $70 million investment in the new juice line will have a positive impact on 30,000 farmers across the region. This investment also aligns with President Uhuru Kenyatta’s “Big Agenda” for Kenya. “Kenyans want a country that works for all of us: we want reasonably priced medical care; we want skilled jobs for our sons and daughters; we want to be entirely food secure, and we want dignified jobs for ourselves,” said President Kenyatta.
During the official launch of the juice line, CCBA Kenya Managing Director Daryl Wilson explained the strategic importance of the juice line. “We are witnessing a trend in which the entire fruit juice and sports drink segment is growing globally as consumer tastes and preferences shift,” said Wilson.
On a global scale, Coca-Cola aims to be a total beverage company which means it will have products in eight types of beverages it believes individuals consume over the course of a day. The juice and sports drink category is one of those. In the U.S. Coca-Cola’s Simply Beverages is rolling out a healthier line of juices with up to a 75% reduction in sugar.
Coca-Cola announced at its 2017 Investor’s Day that it would be rolling out its revenue growth management operation to 20 markets. It would then follow up that roll-out with investment dollars. This investment in Kenya appears to be part of the effort to further grow its 70 year operation in the country.
What’s Next: Coca-Cola announced it would make a $90 million investment between 2016-2018. Look out for any additional investments the company makes to complete that $20 million commitment over the course of 2018.
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