+20% Empowerment equity acquisition for Appletiser South Africa

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(Johannesburg: 8 May 2017) Coca-Cola Beverages South Africa (CCBSA) announced today that it has sold 17.5% of its shareholding in Appletiser South Africa (ASA) to black owned investment company African Pioneer Group (APG). An additional 4% has been sold to a new entrant black empowerment partner, Sipho Excellent Madlala, a 20-year veteran of CCBSA. The value of the respective stakes was not disclosed.

The deal marks a significant milestone in the history of an iconic South African brand that has earned the loyalty of South African consumers over the past 50 years.

The sale of the equity stakes was sealed after a rigorous process of evaluation and selection, facilitated by Standard Bank. It meets one of the merger conditions agreed to with the Competition Tribunal in relation to the creation of CCSBA last year. These were agreed when the Southern and East African non-alcoholic ready-to-drink bottling operations of SABMiller, The Coca-Cola Company (TCCC) and Gutsche Family Investments were combined last May.

Appletiser was previously wholly owned by SABMiller but with the merger, the manufacturing facility, ASA, became a subsidiary of CCBSA, the South African operation of Coca-Cola Beverages Africa (CCBA).

The Tiser brands (Appletiser, Grapetiser and Peartiser), also previously owned by SABMiller, were sold to TCCC as part of the CCBSA merger agreements. This meant that following the brand sale, the operating model of ASA changed from one of an owned-brand production company to a licensed manufacturer of TCCC brands.

As part of the merger conditions the company undertook that ASA’s operations in Elgin (as well as related ASA operations) would be maintained and grown, and that CCBSA would sell 20% of Appletiser in South Africa to a black economic empowerment holding which we have concluded ahead of the required timeline.

Through its 17.5% shareholding, APG will have a seat on the board of Appletiser. Stephen Dondolo, APG’s CEO, already has experience sitting on the CCBSA board (and the Coca-Cola Fortune board before that). Through his 4% acquisition, Mr Madlala will also acquire a seat on the board of ASA. Both will be active partners in the business, in keeping with the provisions of the merger conditions.

Apart from Elgin, the Tiser brands are produced at one other South African facility, in Midrand, and at facilities in the UK, Canary Islands, Belgium and Australia. However, the Appletiser facility in the Elgin valley in the Western Cape is the original – and the largest – producer of the products, and accounts for some 59% of Tiser brands produced globally. Tiser products produced at ASA are marketed in a range of territories including Botswana, Namibia, Zambia, Lesotho, Mozambique, Japan, Australia, New Zealand, Hong Kong, Mauritius and Swaziland.

CCBSA Managing Director Velaphi Ratshefola said the company was confident that Appletiser has capacity to increase production output considerably to serve the domestic market and to be used as a base for export to the rest of the continent and elsewhere in the world. There are plans in place for ASA to produce other TCCC brands (in addition to Tisers) that are currently produced at the other CCBSA manufacturing sites. With the addition of 200ml, 330ml and 440ml cans of other Coca-Cola products, the facility will produce around 5 million physical cases which is well in excess of prevailing volumes at the time of the merger.

“We are delighted to have these two outstanding partners on board. African Pioneer Group has a long history with CCBSA through Coca-Cola Fortune. Excellent has worked his way up the ladder through hard work and perseverance. His experience in our industry is of enormous value and we have in both APG and Excellent long term, dedicated and active partners for Appletiser.”

Mr Madlala’s personal story is one of constant self-improvement and achievement, having started his working life as a cleaner at Amalgamated Beverage Industries (now part of CCBSA). Rising through the ranks, and earning a marketing qualification from Durban University of Technology along the way, Mr Madlala was promoted into more senior positions. Given his clear leadership skills, he achieved a leadership position as District Manager at ABI before the company merged to become part of CCBSA last year, heading up a 94 member-team. Mr Madlala will retain this role in CCBSA following the transaction.

In terms of the Merger Agreement, at least 80% of the apples, pears, grapes and similar fruit inputs used for all juice concentrate used in producing Tiser products will be procured from fruit grown in South Africa, and plans are sufficiently in progress to increase the procurement of South African grapes for juice concentrate in Grapetiser over the next 5 years. Currently all apple and pear concentrate is sourced from South Africa, with grape concentrate increasingly sourced locally, depending on availability and affordability of supply.

Launched in 1966 as the country’s first and only premium sparkling 100% single fruit juice brand, Appletiser has a dedicated consumer base, and holds its premium position largely due to the proprietary techniques that are used in the formulation of Tiser products, which have made it possible for the company to ensure consistent flavour and aroma. Appletiser is a leading soft drink that has positioned itself as a beverage that holds its own for all special occasions.

 

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Rakesh Rajbally

Managing Director: South Africa

Rakesh is C-Suite leader with 26 years of experience in General Management, Sales, Marketing, Logistics and Finance within the FMCG space. He currently leads the South African business for Coca-Cola Beverages Africa. He has a strong growth mindset and has successfully led CCBSA’s Commercial business unit. He is a sought after thought leader in developing & implementing revenue growth and route to market strategies in both modern and emerging markets. Under his leadership CCBSA recently completed a R6bn/ $400m investment in an Affordability growth strategy. He has also led CCBSA’s strategic and operational Customer management and recently achieved the #1 ranking across FMCG in the Advantage survey for 2 consecutive years.

Rakesh leads the CCBSA executive team that has been instrumental in successfully leading a large organization across major transformation changes including the merger of six entities to form CCBSA, the Sugar Tax introduction, Talent diversity strategy and other major productivity initiatives. He is a trusted partner and builds trust-based relations with business partners, stakeholders, and authorities.

His purpose statement “We have 2 hands, one to help yourself, one to help others” reflects in the many young leaders he has successfully coached and mentored.

Janett Forbes

Commercial Excellence Director

Janett is a seasoned financial, logistics, and commercial executive who joins us from Vector Logistics previously a division of RCL Foods where she held position of Finance Director.

Prior to this, Janett was part of the Coca-Cola family, having occupied various senior roles of Finance Manager, Category Manager, Revenue Growth Manager and Channel Development Manager within ABI in 2002 and 2016.

Janett is a qualified Chartered Accountant (CA(SA), has a Bachelor of Commerce degree from Rhodes University in Grahamstown and a higher diploma in Accounting from University of Natal in Durban.

Desilan Pillay

Logistics Director

He joined the Coke system as a Unit Manager Designate at ABI Midrand in 2008. Desilan encompasses 20 years of management experience from companies including Afrox (Linde Group), the South African Breweries (ABI soft drinks and SABMiller – now ABInbev), and Unilever.  

He has a wealth of experience and a vast skillset within South Africa and across the African continent – all at executive levels. This includes, but is not limited to, project management, engineering, production (gases), packaging (FMCG), as well as operations management, financial management, sales and distribution, procurement, and planning (demand, supply, and production). Desilan has managed portfolios across end-to-end Supply Chain (Sourcing, Demand, and Supply Planning), Warehouse Management, Production, and Distribution, including Customer Care, After-sales and reverse logistics. He was also accountable for the delivery of service excellence in order fulfilment, cost of goods sold enhancement via strategic sourcing, and the overall cash optimisation (inventory) across the business. His most recent role before re-joining the CCBSA family is as the Chief Operations Officer at Anchor Holdings, one of the largest privately-owned warehousing companies in South Africa.

Desilan is a qualified Mechanical Engineer and has completed a Management Development Programme from UCT. His areas of expertise include building high performance teams and E2E supply chain and commercial acumen.

Desilan has been happily married for the past 16 years and has a 12-year-old daughter and 18-month-old twins – a boy and a girl. In his spare time, he enjoys seeing new sights locally and abroad. He is always planning his next trip to an exciting destination together with his family.

Nozicelo Ngcobo

Public Affairs, Communications & Sustainability Director

Nozicelo started her corporate career in 1994 when she was recruited by Sasol into their Management Trainee Programme of the top 16 academic graduates in South Africa – class of 1993. In addition to Sasol, Nozicelo has since worked for listed companies such as Telkom SA, South African Breweries (SAB) as well as multi-national organisations such as Philip Morris International (PMI). In 2020, Nozicelo joined Coca Cola Beverages South Africa (CCBSA) as Director for PACS.

Nozicelo has a demonstrable track record in successfully developing and managing corporate affairs and regulatory strategies for complex industries such as alcohol, tobacco and recently the beverages industry. Nozicelo has strong professional networks spanning more than 25 years in both public and private sectors. Her strategic insights, value creation, solutions orientation, strong business/political acumen, solid networks and ability to mobilise teams to successfully execute towards a common vision are just some of the many attributes she brings into any organisation.

Nozicelo is an advocate of human rights, animal rights and has a passion for youth/women empowerment.

Michael John Wilson

Finance Director

Michael started his working career at KPMG as a Manager and Trainee Accountant from 2002 until 2006. After completing his articles, his highest position held at KPMG was Audit Manager and Office Administration Manager. In 2006 to 2009, he worked at BASF South Africa (previously known as Engelhard South Africa), where he was appointed as Site Controller – Mobile Emissions Catalysts Division. He also served as a Team Leader for Finance when the company changed its ERP from JD Edwards to SAP. In 2009, Michael joined Coca-Cola Fortune (CCF) as Finance Manager – Business Support.

In 2015, he was assigned to the CCBA integration team as a Finance work stream member and later that year, Michael was appointed Finance Manager for Marketing, Sales and Distribution. Michael relocated to Windhoek, Namibia in January 2016 as Financial Director for Coca-Cola Beverages Namibia. In October 2017, Michael returned to Port Elizabeth as Group Financial Controller for CCBA, a position he currently holds. He serves on a number of boards and audit committees within the CCBA Group.

In 2000, Michael graduated with a B.Com (Accountancy) Degree from the University of Port Elizabeth and a year later, he completed his B. Com Honours (Accountancy) at the same university. He was admitted as a Chartered Accountant (CA) in 2005. In 2010, he completed his Executive Development Programme at the University of Stellenbosch Business School.

Moses Lubisi

Manufacturing & Technical Director

Moses has over 20 years of extensive experience spanning various industries such as Sugar, Food and Beverages, and Mineral processing, including 15 years within the Coca-Cola system, Moses brings a wealth of knowledge to this role.

His journey within CCBSA has seen him excel in positions ranging from Plant Manager, Regional Manufacturing Manager (Coastal) in CCBSA to Executive Director for Appletiser (Pty) Ltd. Before returning to CCBA within Group Office, Moses served as an Operations Director at Illovo Sugar (Pty) Ltd. His expertise lies in strategy formulation, governance and execution, with a focus on end-to-end value chain orchestration across manufacturing, warehousing, logistics and supply chain management.

Moses has held senior and executive management roles for over six years, overseeing regional and enterprise-level strategies, assets and resource allocation.

Agatha Masemola

Strategy and Performance Director

Agatha joined CCBSA in April 2020 from Absa Corporate and Investment Bank Africa, where she held various roles in the past nine years, including as Managing Principal for Strategy & Business Transformation and Chief of Staff to the Chief Executive of Barclays Africa Corporate Bank. She was a key figure in the build-out and integration of the Corporate Bank across 13 African markets.

Prior to joining Absa, Agatha was a Senior Management Consultant in Strategy and Innovation at Deloitte Consulting, South Africa. At Deloitte, Agatha worked on several executive-sponsored strategy and innovation projects across various sectors, as well as driving new business development. Prior to Deloitte, she worked in Life Sciences R&D for over ten years, both as a full-time researcher with publications in peer reviewed journals, and as a Portfolio Manager & COO for a biotechnology fund management, focusing on investment in early-stage biotech ventures and commercialisation.

Agatha holds a PhD in Medical Biochemistry from the University of Cape Town and has completed post-Doctoral research in South Africa and the USA. She obtained her BSc (Biochemistry and Physiology) and MSc (Biochemistry) from the University of the North. She completed a Management Advancement Programme at Wits Business School to help her transition from laboratory to business.

Agatha loves to travel and enjoys experiencing different cultures and sampling local cuisine.

Hannes Prinsloo

Country Sales Director

Hannes comes with a wealth of experience and strong commercial operations expertise stretching over 30 years within the Bottling system; truly an example of “home grown timber”.

In his most recent role, of General Manager Commercial, he managed the Revenue Growth, Route to Market, Category management, Channel Development and Knowledge and Insights. His previous experiences include that of General Manager Operations, District Manager and National Account Manager.

Among his career achievements, he counts being inducted as a Grand Master in 2021, which is a true testament to his passion for people, strong work ethic, and unwavering commitment to performance. The Masters are seasoned professionals in our core functions (Commercial, Logistics & Manufacturing) who have consistently delivered exceptional results in their 20-plus years of service in the organisation. CCBSA bestows its highest honour these professionals who have shown exemplary commitment, fortitude, passion, loyalty and most importantly, value-adding leadership.

In May 2023, at the annual Coca-Cola Beverages Africa (CCBA) General Management Meeting (GMM) Awards, he was honoured to receive the CEO Award, which honours exceptional leadership that sets a clear example of consistently living our values. In his leisure time, Hannes follows a wide variety of debate platforms and sports.

Mkuseli Dlikilili

Human Resources Director

Prior to Mkuseli’s appointment to CCBSA, Mkuseli was Group Executive: Human Resources at Pioneer Foods, he  worked for leading South African organisations, including Eskom, SAB, Dulux and Portnet.

Mkuseli’s extensive experience in the FMCG environment includes playing a leading role in Pioneer Foods’ successful listing on the JSE and the integration of SA Dried Fruit and Ceres Fruit Juices. Mkuseli is passionate about empowering and developing people to realise their full potential, as well as contributing positively to all the spheres of their lives, and the accentuation of human dignity. He describes himself as an authentic, resilient, reliable, courageous, humble, principled and value-based person, and a committed Human Resources professional.