Local procurement to benefit from Coca-Cola Beverages South Africa inaugural supplier development initiative

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Company on track to deliver merger condition public interest commitments

[Johannesburg, 30 March 2017] Today, Coca Cola Beverages South Africa (CCBSA) will hold its inaugural Supplier Development Conference at Gallagher Estate.

This conference is a key milestone event which forms part of CCBSA’s commitment to a series of public interest conditions attached to its parent company’s (Coca Cola Beverages Africa) establishment last year.

In terms of the agreed public interest conditions that were approved by the Competition Commission, the Supplier Development Conference will be held annually to identify opportunities to maintain and grow local procurement. CCBSA has given its commitment to advancing local procurement and has agreed to train its own managers on the value of local procurement to reinforce this commitment.

The event will be attended by over 500 handpicked, black owned high-growth-potential SMME delegates from a variety of industries. They will be addressed by an outstanding line-up of speakers with broad industry knowledge across a wide range of issues. The keynote speaker at this high-profile event will be Minister of Economic Development, Ebrahim Patel.  An evening networking event will be hosted for delegates after the meeting.

“Although this is a seminal event, it’s about so much more than delivering a merger condition; it’s about being an active partner in South Africa’s economic and social development as a whole, and in the development of the local beverage sector in particular. In this and other initiatives, we’re working to promote small business and supplier development, and to enhance entrepreneurship in our economy,” said Velaphi Ratshefola, Managing Director of CCBSA.

The public interest commitments agreed to were wide-ranging and in respect of protecting suppliers’ direct interests, included a commitment to maintain and, where possible, improve CCBSA’s level of local procurement of South African inputs. These include all tin and aluminium cans and ends, glass and PET bottles, PET closures, packaging, crates and sugar. The company undertook to honour existing agreements with suppliers and further undertook to provide training for its managers on the value of local procurement.

The company has also undertaken to invest in retailer development and agriculture enterprise development by making R800 million available for entrepreneurship development over the next five years. A R400-million allocation will focus on the development of downstream distributors and retailers. Between 2017 and 2020, an additional 25,000 black retailers of CCBSA’s products will receive business skills training.

A R400-million fund for enterprise development in the agriculture value chain will support and train historically disadvantaged developing farmers and historically disadvantaged or small suppliers of inputs for Appletiser and CCBSA products.

“In addition, as part of our commitment to the country’s economic development, we agreed to initiate a 20% black shareholding in Appletiser to be delivered by May this year, and are increasing the empowerment shareholding in CCBSA as a whole by 9%, to take it up to 20% within five years.

“We’ve been working hard on several of the other public interest merger commitments that were endorsed by the Competition Commission, but this has largely been done out of the public eye. “This Supplier Conference is our first public event and we believe it will give delegates an exceptional opportunity to engage on many issues that affect them, position them well to supply both CCBSA and other major companies, and learn from expert insights of the outstanding line-up of speakers.”

For further information, please contact Tamra Veley on 083 251 3658

Note to editors

  • In November 2014 The Coca-Cola Company, SABMiller plc and Gutsche Family Investments (GFI, majority shareholders in Coca-Cola Sabco) announced they had agreed to combine the bottling operations of their non-alcoholic ready-to-drink beverages businesses in Southern and East Africa.
  • In October 2016, Anheuser-Busch InBev announced it would be combining with SABMiller.
  • In the same month, The Coca-Cola Company announced its intention to acquire AB InBev’s stake in Coca-Cola Beverages Africa (CCBA).
  • The Coca-Cola Company and Anheuser-Busch InBev reached agreement in December 2016 regarding the transition of AB InBev’s 54.5 equity stake in Coca-Cola Beverages Africa.
  • Competition Commission approval for the creation of CCBA was received in May 2016 with a requirement that the public interest conditions agreed by the merging parties be honoured.

Summary of public interest conditions committed to:

  • CCBSA must maintain and improve local procurement percentage in relation to the base year (Fiscal 16)
  • CCBSA must maintain employment levels to the number at the merger approval date for three years
  • CCBA and CCBSA must be headquartered in SA, and be tax-resident in SA
  • BBBEE equity holding in CCBSA to be increased from 11% to 20% within five years
  • The empowerment transaction will benefit a number of stakeholders, including an employee share-ownership scheme which will be implemented within a period of four years from the Approval Date (by 10 May 2020)
  • CCBSA to provide business and inherent risk training to employees who opt to become Owner Drivers
  • Retailers should be allowed to use up to 10% of visible space in CCBSA fridges for small competitors products in small and micro outlets
  • A R400m fund to be set up to develop downstream distributors and retailers over five years. Funding for this cannot be redirected from other expenditure for retailers which would ordinarily have been incurred. New retail outlets established as a result of this investment will not be required to operate on an exclusive basis for CCBA and can sell products competing with those of CCBA
  • A R400m fund to be set up to develop previously disadvantaged farmers. The fund should be for the support and training of historically disadvantaged developing farmers and historically disadvantaged or small suppliers of inputs for Appletiser SA and CCBSA products. The fund will provide training and the disbursement of grants according to the B-BBEE Codes on Supplier Development and Enterprise Development.

 

 

 

 

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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.