HARAR CAMPUS

POSTGRADUATE PROGRAM DIRECTORATE

COLLEGE OF BUSINESS AND ECONOMICS

Department Of Masters Of Business Administration

Program Weekend

Term Paper on East Africa In Case Dire Dawa Coca Cola Company

Submitted by:

ABDUSELAM USMAN ID No: 056/12

Submitted to:

February, 2021

HARAR, ETHIOPIA

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Contents
ABSTRACT............................................................................................................................................ 3

1. Introduction ........................................................................................................................................ 3

1.1. Background of the Study ................................................................................................................. 3

1.2 Background of the Company ............................................................................................................ 4

1.3. Coca Cola Company’s Vision and Objective................................................................................... 6

1.4. Coca Cola Company’s Mission........................................................................................................ 6

2. Product and product mix ..................................................................................................................... 7

2.1. Product quality ................................................................................................................................. 7

2.2. Branding........................................................................................................................................... 7

2.3. Packaging and Labelling .................................................................................................................. 7

2.4. Product line and product mix decisions ........................................................................................... 8

2.5. Price ................................................................................................................................................. 8

2.6. Place ................................................................................................................................................. 9

2.7. Promotion....................................................................................................................................... 10

2.8. Manufacturing System, robust design, value analysis and modular of East Africa Coca Cola
Company ............................................................................................................................................... 11

2.9. Manufacturer-owned Intermediaries .............................................................................................. 12

2.10. Environmental issues ................................................................................................................. 13

2.11. Service and its life cycle .............................................................................................................. 13

3. Process and its flow diagram In The Case Of East Africa Bottling Share Company ....................... 14

3.1. Internal Business Analysis ............................................................................................................. 14

3.2. External Business Analysis ............................................................................................................ 14

3.3. LOCATION and LAYOUT In The Case Of East Africa Bottling Share Company ...................... 16

4. Conclusion ........................................................................................................................................ 18

REFERENCE........................................................................................................................................ 20

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 ABSTRACT
The purpose of this study is to assess operational management in East Africa Bottling
Share Company (EABSC) which is located in dire dawa coca cola products in Ethiopia,
operating under Coca-Cola Beverages Africa (CCBA).East Africa Bottling Share
Company was established in 1959 by five Ethiopians with the first plant around Abinet,
Addis Ababa, with an initial capital of birr 750,000. The second plant located in Dire
Dawa was inaugurated in the year 1965. East Africa Bottling S.C.) Ethiopian Soft Drinks
Companies. Besides, the supply chain cost analysis saves Birr 2,171,780.17 (2.62 %) than
the existing cost analysis.

The first coca cola bottler in Ethiopia was established in 1959 privately shared Business
Company in Addis Ababa it is located in at lideta k/ketemakebele 04 around abnet areas
the East Africa Bottling Company (EABC) at the business expand a branch was
established in Dire Dawa in 1965.The two plants were nationalized in 1975 when
government system changed from monarchy to socialism and run as a public company
until 1996. On 19th may 1999 a joint venture agreement was signed between EABC
founder’s shareholders and Coca-Cola SABCO (CCS) or Coca Cola South Africa
Bottling Company

In this paper we try to express some elements of the products and product mix in East
Africa Bottling S.C.) Ethiopian Soft Drinks Companies, as well as to express detail
process, flow chart, layout diagrams of its products

1. Introduction

1.1. Background of the Study

One of the players in the highly growing manufacturing sector is East Africa Bottling Share
Company (EABSC) which is a sole bottler of coca cola products in Ethiopia, operating under
Coca-Cola Beverages Africa (CCBA). East Africa Bottling Share Company was established
in 1959 by five Ethiopians with the first plant around Abinet, Addis Ababa, with an initial
capital of birr 750,000. The second plant located in Dire Dawa was inaugurated in the year
1965. This time the five Ethiopians were joined by one foreign national. In May 1999, the

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company made a leap forward by signing a joint venture agreement with South Africa
Bottling Company named Coca-Cola South Africa Bottling Company (CCSABCO). In 2001,
Coca-Cola Sabco increased its share to 61% and took the lion’s share in leading and
managing the business. On July 02, 2016, it was declared that Coca-Cola Sabco was merged
with The Coca-Cola Company and SABMiller to form Coca-Cola Beverages Africa (CCBA).
Their respective share is SABMiller: 57.0%, Coca-Cola SABCO (Gutsche Family
Investments): 31.7% and The Coca-Cola Company: 11.3%.

1.2 Background of the Company

The Coca Cola history started in the year 1886 when a pharmacist called Dr. John Pemberton
created a soft drink that was sold at his neighbourhood pharmacy. Prior to Dr. John
Pemberton’s death in 1888, he sold portions of his business to several parties but the majority
was sold to Atlanta businessman Asa Candler. At first the Coca Cola soft drink was sold per
glass but then a businessman called Joseph Biedenharn started putting the Coca Cola soft
drink in bottles. In addition, in the year of 1899 three entrepreneurs purchased the bottling
rights for the Coca Cola drink from Asa Candler for a one-dollar only.

The first coca cola bottler in Ethiopia was established in 1959 privately shared Business
Company in Addis Ababa it is located in at lideta k/ketemakebele 04 around abnet areas the
East Africa Bottling Company (EABC) at the business expand a branch was established in
Dire Dawa in 1965.The two plants were nationalized in 1975 when government system
changed from monarchy to socialism and run as a public company until 1996. On 19th may
1999 a joint venture agreement was signed between EABC founder’s shareholders and Coca-
Cola SABCO (CCS) or Coca Cola South Africa Bottling Company.

In December 2001 CCS shareholding increase to 61% with remaining balance belongs to
EABSC’S founder share holder. The company then becomes known as the east Africa
bottling share company (EABSC’S). The east Africa bottling share company (coca cola) is
producing and selling different kinds of non-alcoholic beverages.

One of the players in the highly growing manufacturing sector is East Africa Bottling Share
Company (EABSC) which is a sole bottler of coca cola products in Ethiopia, operating under
Coca-Cola Beverages Africa (CCBA). East Africa Bottling Share Company was established
in 1959 by five Ethiopians with the first plant around Abinet, Addis Ababa, with an initial
capital of birr 750,000. The second plant located in Dire Dawa was inaugurated in the year
1965. This time the five Ethiopians were joined by one foreign national. In May 1999, the

4
company made a leap forward by signing a joint venture agreement with South Africa
Bottling Company named Coca-Cola South Africa Bottling Company (CCSABCO). In 2001,
Coca-Cola Sabco increased its share to 61% and took the lion’s share in leading and
managing the business. On July 02, 2016, it was declared that Coca-Cola Sabco was merged
with The Coca-Cola Company and SABMiller to form Coca-Cola Beverages Africa (CCBA).
Their respective share is SABMiller: 57.0%, Coca-Cola SABCO (Gutsche Family
Investments): 31.7% and The Coca-Cola Company: 11.3%.

After the privatization and merger with the South African company, EABSC has shown
continuous growth by benefiting from the strategic leadership and long years business
experience of the mother Company which led to advancement in professionalism, knowledge
and experience from which both parties have been benefiting for the past 15 years and is
expected to continue for the years to come. Now, CCBA serves 12 high-growth countries
accounting for approximately 40 per cent of all Coca-Cola beverage volumes in Africa.
On June 12, 2013, EABSC established its third plant in Bahir Dar city and started serving the
northern Ethiopia Market since November 16, 2016.

EABSC products are soft drinks some of them are the following: Coca-Cola, Fanta, Sprite,
Fanta Ananas, Fanta Tonic and Crystal Water. As a subsidiary company of CCBA, EABSC
has a vision of becoming the best coca cola bottler in the world, the best in terms of sales
volume and return on capital employed against all Coca-Cola bottlers in the world. EABSC
has a purpose of creating value for everyone involved in the business by providing right
refreshment, at the right price and place. The value statement of EABSC emphasizes that the
company will create an environment where employees are passionate about performance by
maintaining integrity, individual initiative, customer value, team work, people development,
mutual trust, respect, and commitment.

EABSC is managed by board of directors which is composed of Ethiopians and foreign

nationals. Reporting to the board is the executive management team headed by the Chief
Executive Officer with competency/department Directors. As of November 10, 2016, East
Africa Bottling Share Company has a total of 1,538 permanent employees who are working
in Addis Ababa (1,152), Dire Dawa (317) and Bahir Dar (69) manufacturing plants.

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1.3. Coca Cola Company’s Vision and Objective
Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

 People: Be a great place to work where people are inspired to be the best they can be.

 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.

 Partners: Nurture a winning network of customers and suppliers, together we create

mutual, enduring value.

 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.

 Productivity: Be a highly effective, lean and fast-moving organization

The new vision statement is

''Our vision is to ensure great work place for employees to maintain high productivity,

Bringing high quality beverages to satisfy different tastes while maintaining sustainable
communities for future generations and maximum profits for shareholders

1.4. Coca Cola Company’s Mission:

The mission of Coca cola is as follows: Our Roadmap starts with our mission, which is
enduring. It declares our purpose as a company and serves as the standard against which we
weigh our actions and decisions.

 To refresh the world

 To inspire moments of optimism and happiness

 To create value and make a difference

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 2. Product and product mix
The product is the key element in marketing mix while they insist that it is “anything that can
be offered to a market for attention, acquisition, use, or consumption that might satisfy a want
or need”. Coca-Cola has embraced the given theory and applied the three levels in products
decision-making, which are individual product decisions, product line as well as product mix
decisions.

2.1. Product quality

The concept of product quality is twofold, including the high level and the consistency,
highlighting the uniqueness. Coca-Cola has chosen the proper quality level to meet the needs
of the target market and the quality standards of competing products. Specifically, the
company has the most unique and qualitative flavour delivered for decades accurately and
consistently without any alteration, satisfying its consumers, who developed a deep emotional
bond with the authentic Coca Cola. Nevertheless, the company is constantly evolving and
aims to meet the targeted needs with exceptional quality of even more segmented audience.
Coca-Cola maintains the widest range of soft drinks in beverage industry, which consists of
3.900 different products. It must be stressed that these soft drinks are classified on different
various categories such as diet, fruit juice, tea, energy drinks and more in order to satisfy as
more needs as possible (Coca-Cola, 2017).

2.2. Branding
Coca-Cola maintains the most recognizable brand all over the world. Particularly, Coca-Cola
as brand name is simple and short, adaptable to packaging, labelling needs as well as to all
the advertising means not to mention easy to spell, read and pronounce with the same
meaning in all languages. It is a fact that branding facilitates both consumers and the
company. From consumer’s point of view, Coca Cola’s brand name is easily identified and
from company’s perspective, copyright law protects Coca Cola’s trademark legally, avoiding
copying from competitors.

2.3. Packaging and Labelling

Coca-Cola has invested heavily in the packaging and labelling of its products obtaining their
presence in different packaging material and sizing. The company is not only confined to
storing and protecting the content but also utilizes the packaging as the medium of targeting
and attracting customers. For instance, Coca-Cola prints QR codes for upcoming
competitions, concerts, etc. Clearly, Coca-Cola uses the packaging and labelling for

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additional information that are beneficial to consumers, upgrading its corporate responsibility
In particular, the company provides specific information concerning the origin of each
product, the manufacturer, the packaging material and the expiry date.

2.4. Product line and product mix decisions

Coca-Cola all these years measures and segments successfully the market in order to achieve
sustainability. For this accomplishment, the company does not only target and segment its
market but also produces lines of products that are closely related. For instance, the company
produces a line of carbonated beverages that have a similar customer target, marketed by the
same means and placed in a similar price range to each other. This product mix, or else
product portfolio, raises the company's profitability and gives multiple but similar choices to
consumer targets for greater variety and more commitment to the brand

2.5. Price
Price is considered the heart of each business because it secures its profits. Apart from this,
within the marketing mix, price is the only factor that generates revenues while the other 3Ps
depict company’s costs. For Coca-Cola all pricing decisions start with the customer value,
where the consumer must perceive that the value he/she received from the product worth with
the amount he/she paid. Subsequently, before applying the pricing strategy, the company

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concentrates on its competitors by setting its final price based on competitors' costs, prices
and offers, mainly on Pepsi, Coca-Cola and Pepsi, have formed a cartel agreement to ensure a
pricing balance. It should be noted that the company applies different pricing policy to each
product item, because the firm has different levels of competition despite the fact that it has
related demands and production costs (Coca-Cola, 2017).

2.6. Place
Coca-Cola preserves an extensive distribution network through indirect marketing channels,
balancing the services outputs and consumers’ needs. Since delivering customer value is the
cornerstone in marketing, the company follows the fast-moving consumer goods (FMCG)
pattern where the distribution begins with the producer and ends with the consumer,
providing its products available in almost all the retails and big chain markets all over the
Even though there are many sales models in the market landscape, Coca-Cola combines all
intermediaries, brokers, retailers and wholesalers, in order to build and maintain the most
efficient marketing channel all over the world covering consumers’ needs such as product
variety, waiting and delivery time, spatial convenience and service backup. It is important to
be noted that the company’s distribution system is so effective that has eroded smaller
production units of similar products (Coca Cola, 2013).

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 2.7. Promotion
Coca-Cola adopts various promotional strategies focusing on consumer's demand increment
in terms of products, steering to sales boost not to mention creating brand loyalty.
Specifically, the company blends promotional tools such as advertising, public relations, sales
promotion and direct marketing. The benchmark for this aggressive marketing is the
significant amount investment on advertising campaigns such as TV, radio, print and online
media, transport, billboards etc. Moreover, Coca-Cola utilizes corporate social responsibility
(CSR) in order to acquire sentimental benefit on customers' minds, while driving alteration
towards sustainability such as social issues improvement as well as planet rescue. Despite the
fact that the company pays celebrities with the ultimate goal the consumers to integrate the
products as required in their everyday life, provides also sponsorship to huge events.

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2.8. Manufacturing System, robust design, value analysis and modular of East Africa
Coca Cola Company
Manufacturing system (Operations) matches production capacity and output to customer
demand. This may appear simple: a customer wants 24 soft drinks, so the factory produced
24 soft drinks. Some factors work this way, but many cannot. This simplicity vanishes when
quantities increase, demand patterns vary by cycle and by season, and production capacity
varies as well. Most production facilities must deal with simultaneous demand from many
customers: let 100 customers each want one crate or 24 bottles at same time. Not only that,
but each wants different brands of soft drinks and packaged differently. At times demand
exceeds capacity, creating a backlog. At other times, capacity is underused, creating costs
without creating revenues. Once variation is introduced, the problem of matching out put
demand becomes complex.

Coca cola serves their drinks globally and owns a variety range of products including soft
drinks, mineral water, juice, energy drinks and ice teas. The below list includes the full range
of their beverages
 Coca-Cola(Coke)\
 Diet Coke
 Coca-Cola Zero
 Sprite
 Fanta
 Simply Orange
 Del Valle
 Powerade
 Vitaminwater
 Odwalla
 Fuze Beverage
 Dasani
 Ciel
 Smart water
 Honest Tea
 Minute Maid

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 2.9. Manufacturer-owned Intermediaries
Manufacturer owned intermediaries are set up by manufacturers in order to have separate
business units that perform all the functions of independent intermediaries while at the same
time maintain complete control over the channel. Manufacturer owned intermediaries include
sales branches, sales offices, and manufacturers’ showrooms. Sales branches carry inventory
and provide sales and service to customers in a specific geographic area. Sales offices do not
carry inventory but provide selling factious for the manufacturer in a specific geographical
area. Because they allow members of the sales force to be located close to customers, they
reduce selling costs and provide better customer service.

Opportunities
Coca Cola can introduce new products and diversify their current offerings and overcome
their weakness. As the company already have their brand identity, customers, manufacturing,
and evaluation to support them. It’s possible to find niches that are not used by their
competitors to develop products. They can focus on the healthy snacks/drinks area as people

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have become more health conscious nowadays. This will aid in overcoming their weakness
which is lack of healthy products. Referring to their weakness of negative publicity, Coca
cola can overcome this news by creating positive campaigns that aids the environment and
the society. These campaigns spread around the world positively and therefore consumers
forget about the negative news and focus on their social and environmental contributions

 Introduce new product line – healthy products

 Improve their publicity

2.10. Environmental issues

We have increased capacity from the old plants by a factor of four and we currently don't
have a single bottle in the warehouse," says Jansen.
The investments will have positive ramifications for the whole country. "By 2020 we will be
water neutral," Jansen explains."This means, for every litre of water we take out from the
earth, we will put one litre back. We have a best practice in waste water treatment in
Ethiopia. We have spent well over $2 million for the plant in Addis Ababa and $3 million for
Dire Dawa and we'll do the same in all new plants."By 2020, we will also be energy neutral,
by then we will not be pulling power off the grid. We will be totally self sufficient on power.
We are involved in cleaning up rivers and recycling. We're committed to caring for our
environment."

2.11. Service and its life cycle

The Coca Cola Company only owns the bottling facilities of North America while the
company’s partners own other global bottling facilities. Therefore, we can say that Coca Cola
Company is only responsible for the after sales services of its Dire Dawa bottling facilities.

 Delivering the best tasting, the highest quality and the most consistent products in
the market place.
 Build on brand platforms by creating new channels, which develop the business.
 Being quicker to create and take the advantages of opportunities.
 Standardizing business operating system to:
 Enhance their ability to provide the highest level of customer service
 Develop ability to measure and manage key indicators (parameters) of the
business in a consistent fashion.
 Establish a set of practices and disciplines for the organization

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3. Process and its flow diagram In The Case Of East Africa Bottling Share Company
Increasing process efficiency
An organisation can be termed to be fully efficient when its process time is minimised
without affecting the quality. Process time plays an important role when the demand is
suddenly increased. Inefficient pre-planning and process planning will lead to disruption in
supply of high demands. In a continuous evolving market with highly volatile consumer
demands both in quantity and preferences, innovative supply chain markets, speed, precision
and empowered employees decide the winner.

3.1. Internal Business Analysis

Coca-Cola ensures fundamental internal features such as the efficient production process, the
appropriate organizational skills as well as the effective communication and distribution
networks, in order to achieve its mission and objective, the consumers’ satisfaction. Coca-
Cola uses the SWOT analysis technique to monitor its internal strengths and weaknesses

3.2. External Business Analysis

The outer business environment is more powerful than the internal one. External factors,
which are divided into two types -the Micro and Macro environment-, can affect the entire
business even the economy. In particular, any alteration, especially in the macro environment,
can create threats with aspects in the entire market place

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Coca-Cola is the most recognised brand on the planet, a billion dollar product sold in 206
countries. It has been in Africa since 1929, operates in nearly all of Africa's countries and is
one of the continent's largest employers with almost 70,000 employees in 160 plants.

It is a giant and Africans buy more than 35 billion bottles of Coke a year.What many people
don't realise however is that no matter where in the world Coca-Cola is, its brands are
produced, packed and distributed by bottlers, suppliers and retailers that are deeply rooted in
the communities in which it operates. These are partners in the truest sense, sharing the same
vision and mission."Coca-Cola has ambitious plans for Africa," says Greig Jansen, CEO of
Coca- Cola producer East African Bottling Share Company (EABSC). "It is investing several
billion dollars in Africa over the next decade."

Process planning establishes the shortest route that is followed from raw material stage till it
leaves as a finished part or product. The activities that are associated with process planning
are:

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  List of operations to be performed and their sequence and Specifications of the
machines and equipment required.
 Necessary toolings, jigs and fixtures and Gives the manufacturing details with respect
to feed, speed, and depth of cut for each operation
 To be performed and It gives the estimated or processing time of operations.
 All the above information is represented in the form of a document called process
sheet or route sheet. The information given in the process sheet can be used for
variety of activities.
 It becomes the important document for costing and provides the information on the
various details and like set-up and operation times for each job.
 The machine and manpower requirements can be computed from the set-up and
operational times. Helps to carryout scheduling.
 The material movement can be traced. It helps in cost reduction and cost control and
It helps to determine the efficiency of a work centre.

3.3. LOCATION and LAYOUT In The Case Of East Africa Bottling Share Company

The site selected for the location of a plant influences its layout in more than one way.
First, the size and terrain of the site determine the type of building which, in turn, influences
the layout. Second, the location of the plant determines the mode of transportation, depending
upon the distances from the source of raw materials and market to the Plant

The production flow of Coca Cola involves passing sub-assemblies/parts from one stage of
production to another in a regular flow. Each stage adds to the products, this is typical among
bottling plants. Coke used this method because the products being distributed by the company
are in wide variation and is sold in bulk amounts. Products being distributed range from the
bottled goods such as Coke, Diet Coke, an assorted amount of different flavoured soft drinks,
to bottled water. Given that, Coca Cola has such a large range of production, continuous flow
is the best way to produce the products.

Process Layout
Also called the functional layout, layout for job lot manufacture on batch production layout,
the process layout involves grouping together of like machines in one department. For

16
example, machines performing drilling operations are fixed in the drilling department,
machines performing casting operations are grouped in the casting department; and so on. In
this way, there would be a heating department, a painting department, a machining
departments etc., where similar machines are installed in the plants which follow the process
layout. The process arrangement is signified by the grouping together of like machines based
upon their operational characteristics.
Product Layout
Also called the straight-line layout or layout for serialized manufacture (the term straight-
line, as applied to production, refers to the movements which do not involve backtracking or
crossing of the line of movement of the product), the product layout involves the arrangement
of machines in one line , depending upon the sequence of operations. Materials are fed into
the first machine and finished goods travel automatically, from machine to machine, the
output of one machine becoming the input of the next. It is a feast for the eyes to watch the
way sugarcane, fed at one end of the plant, comes out as sugar at the other end. Similarly, in a
paper mill, bamboos are fed into the machine at one end and paper comes out at the other
end.
The flow diagram of East Africa Bottling Soft Drinks Share Company (EABSC)
When we express the step of flow chart by words because the graph is more complex
 Ingredients are delivered to the factory.
 Small pieces of plastic known as ‘resin’ are converted into the preform of a bottle.
 The preform is blown into the size of bottle needed.
 Bottle is filled with the beverage.
 Bottle is sealed with the closure.
 Label is pasted.
 Laser inspects for over or under filling of cola in bottle.
 Bottle is encoded.
 Bottles are grouped together in form of cases.
 Plastic sheet is wrapped around the cases.
 A bundle of cases is packed together.
 Cases are moved to warehouse.
 Distributors collect order from warehouse

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 4. Conclusion
East Africa Bottling Soft Drinks Share Company (EABSC) .The Coca Cola bottling plant
was first established in 1959 in Addis Ababa and later in Dire Dawa. The factories were
nationalized in 1975 and remained in the hands of government for over twenty years
The establishment was sold to a group of Ethiopian shareholders in 1996 and in 1999 a joint
venture agreement was signed between the Ethiopian shareholders and Coca Cola SABCO,
with the latter, according to William Egbe, Director of Coca Cola East Africa and Islands
Region, injecting a capital of 9.1 million dollars to acquire 49% of the shares in EABSC.
According to Egbe, at the end of 2001 SABCO contributed additional capital amounting to
4.2 million dollars, raising its share to 61.3. The fund, he said, was used to implement the
new expansion project.

The company has invested about 133 million birr over the past four years in the establishment
of two bottling lines, the renovation of the factory and the purchase of new marketing
equipments, according to Beyene Berhe, EABSC’s Board chairman. The chairman said at the
inauguration ceremony that an additional investment of 100 million birr was in the pipeline
for further additional marketing support and production improvements. The chairman also
said that as there was a huge potential in the Ethiopian soft drinks market, EABSC was ready
to meet the challenge by providing additional capital investment, by developing human
resources and by producing high quality soft drink products.

Mr. Citos Reyes, Managing Director of East African Bottling Share Company said the two
new bottling lines each installed with 72 filling heads with a combined capacity of filling
48,000 bottles per hour, are equipped with state of the art technology, increasing the capacity
of the factory by three-fold. The largest Coke bottler in the world, Coca-Cola Enterprises, is
in the midlist of yet another growth spurt. Coca-Cola & Schweppes beverages (CCSB) are a
joint venture of the Coca-Cola Company (49%) and Ad bury Schweppes (51%). CCSB
bottles and distributes both parent companies products. After acquiring Coca-Cola &
Schweppes beverages, CCE will distribute Cadbury Schweppes products in the UK

Coca-Cola is the most recognised brand on the planet, a billion dollar product sold in 206
countries. It has been in Africa since 1929, operates in nearly all of Africa's countries and is
one of the continent's largest employers with almost 70,000 employees in 160 plants.

18
It is a giant and Africans buy more than 35 billion bottles of Coke a year.What many people
don't realise however is that no matter where in the world Coca-Cola is, its brands are
produced, packed and distributed by bottlers, suppliers and retailers that are deeply rooted in
the communities in which it operates. These are partners in the truest sense, sharing the same
vision and mission."Coca-Cola has ambitious plans for Africa," says Greig Jansen, CEO of
Coca- Cola producer East African Bottling Share Company (EABSC). "It is investing several
billion dollars in Africa over the next decade."

Coca-Cola was first bottled in Ethiopia's capital Addis Ababa in 1959 by the Ethiopian
Bottling Share Company, which later opened a second branch in Dire Dawa in 1965. The two
plants were nationalised in 1975 and ran as public companies until 1996, when they were
bought by private investors. Just prior to that, in 1995, the Coco-Cola South AfricanBeverage
Company (Coca-Cola SABCO) bought shares in the business and in 1999 signed a joint
venture agreement with the plants. In 2001, Coca-Cola SABCO increased its shares to 61
percent and the company changed its name to the East African Bottling Share Company.
EABSC continues to run the two plants in Addis Ababa and Dire Dawa.

"We employ over 1,500 people in Addis Ababa and Dire Dawa and produce 720 million
bottles of soft drinks a year," says Jansen. "We are one of the top performing countries in
terms of growth, profitability and efficiencies."In April last year, EABSC unveiled an eight-
year, $500 million investment plan, intended to boost its presence in the country by the year
2020."If we look at what we're doing in terms of the new investment, it is something in the
region of nine new lines," Jansen adds. "We're really bringing in a whole new portfolio over
the next couple of years and our strategy is to be able to have a cold Cola-Cola within arm's
reach for all our consumers in Ethiopia by 2020."Companies interested in doing business in
Africa can learn a lot by looking at how Coca-Cola and EABSC operate.

19
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