ZAMBIA Breweries has sold its Coca-Cola Bottling business to Kalundu Beverages Limited.
The brewer wants to only focus on producing and distributing clear beer brands such as Mosi Lager, Castle, Carling Black Label, Eagle, Stella Artois, and Budweiser.
According to a statement issued through Langmead and Baker Communications, ZB did not disclose amounts involved in the sale of Coca-Cola Bottling.
“Zambian Breweries has finalised the sale of its Coca-Cola bottling business to Coca-Cola Beverages Africa (CCBA) in a move that paves the way for it to focus fully on its clear beer operations. The transaction follows shareholder and regulatory approval and is part of Coca-Cola’s wider restructuring of its bottling and distribution business across Africa in the wake of the acquisition of Zambian Breweries’ parent company SAB Miller by AB InBev in 2016,” the statement reads in part.
Under the agreement, identified employees have all received letters of employment from CCBA’s new company, Kalundu Beverages Limited, trading as Coca-Cola Beverages Zambia, and officially transferred with the business.
ZB country director Jose Moran said he was very pleased that no worker had lost employment.
He believes Kalundu Beverages’ focus on soft drinks with CCBA at its helm would be beneficial for the growth of the soft drinks category in Zambia.
“I wish the soft drinks team and our former colleagues all the best in this new adventure. The team will of course remain our friends and we look forward to catching up from time-to-time…Zambian Breweries will continue to manufacture and bottle Coca-Cola soft drinks under a ‘co-packaging’ contract with Coca-Cola Beverages Zambia (CCBZ),” said Moran. “CCBZ is a separate legal entity, unrelated to Zambian Breweries Plc, an ultimately owned by the Coca-Cola Company, which will now distribute and market its brand.”