The Coca-Cola Beverages Africa merger parties welcome Competition Tribunal Approval for formation

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The Coca-Cola Beverages Africa (CCBA) merger parties – SABMiller plc, The Coca-Cola Company, and Gutsche Family Investments – have welcomed the approval given by the South African Competition Tribunal, with agreed conditions, to the formation of Africa’s largest soft-drink beverage operation. The parties said the decision is an endorsement that the merger will support the business agenda within the broader South African political and social context.

The Tribunal’s approval of the merger follows agreements reached between the merger parties and the South African Government, unions and the Competition Commission on a comprehensive set of commitments that will ensure the formation of Africa’s leading Coca-Cola bottling partner helps support economic and social development in South Africa. The merger parties expect the transaction to complete as soon as practicable.

The commitments include detailed conditions related to employment, access to retail cooler space for smaller competitors, localisation of production and inputs used in the production of Coca-Cola products and Appletiser brands, economic empowerment and the location of its headquarters and tax residency in South Africa.

The merger parties undertook to ensure that the merged entity maintains its total permanent employment at current levels for a period of three years from the date of approval of the deal; that there will be no involuntary retrenchments of employees in the bargaining unit and that retrenchments of non-bargaining unit skilled staff be limited.

The merger parties have agreed to invest R800 million to support enterprise development for two groups of entrepreneurs. They will create a R400 million fund for enterprise development in the agriculture value chain, particularly to support and train historically disadvantaged developing farmers and small suppliers. They will also make a R400 million incremental investment to develop downstream distribution and retail aspects of Coca-Cola Beverages South Africa (CCBSA) as well as the skills development of an additional 25,000 black-owned retailers of CCBSA’s products.
In committing itself to broad-based black economic empowerment aligned to the SA government’s imperative to equalise economic opportunity, the merger parties have also agreed to increase black ownership of CCBSA to 20% and will sell a 20% shareholding in Appletiser South Africa to black shareholders who will play an active role in the business.

The merger parties also agreed to a number of commitments which align closely with other national imperatives, including granting the freedom in certain circumstances for small retail outlets to provide space in Coca-Cola coolers for smaller competitors’ products. Appletiser SA and its South African production operations will be maintained to both grow the operations domestically and serve as a base from which to export Appletiser.

The headquarters of CCBA and CCBSA will be located in South Africa, ensuring the companies will remain tax-resident in the country and bring additional revenues to local and national governments. Headquartering CCBA in South Africa will further cement the country’s standing as the investment and business ‘gateway to Africa’; and the proposed merger of CCBA demonstrates a clear commitment by the merger parties to invest in South Africa for the long term.

Alan Clark, CEO, SABMiller noted: “The creation of Coca-Cola Beverages Africa is more than the creation of a company with common interests and a long term growth plan: the merger is set to deliver demonstrable benefits to South Africa by way of significant inward investment and additional tax revenues, job creation and a number of specific benefits that address the national imperatives of SMME creation, local procurement, transformation, and growth in the agricultural sector.”

James Quincey, President and Chief Operating Officer of The Coca-Cola Company commented: “ Today’s announcement ensures that the creation of Coca-Cola’s largest bottling partner in Africa will strengthen our business while also closely aligning with the South African government’s national imperatives for social and economic development. Coca-Cola has been firmly committed to our business in Africa and supporting local communities since we first began operations in South Africa almost 90 years ago, and this agreement marks the latest important step in that journey.”

Gutsche Family Investments (GFI) chairman Phil Gutsche said: “I am delighted that, with the approval of the merger by the Competition Tribunal, we will be able to deliver the significant benefits promised by the creation of CCBA. Given the scope and reach of the new company, and its commitment to being headquartered in South Africa, the merger helps position the country as the undisputed economic gateway to Africa.”

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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.