Coca-Cola Beverages Botswana (CCBB)

THE STORY OF A BOTSWANA SOFT DRINK BUSINESS

SHAKING UP THE NON–ALCOHOLIC BEVERAGES INDUSTRY

Writer: Rachel Carr | Project Manager: Bex Middleton

now trading as Coca-Cola Beverages

and selling of the products.

to-end bottler, whereby the company invests in the production, distribution

With a current population of over 1.4 billion in Africa, and growing, Coca-Cola has a slogan of, ‘one billion reasons to believe in Africa’. Moreover, the team at CCBB has the same belief, as the company is keen to quench the thirst of the population in Botswana while also encouraging economic investment in the country.

“Africa is undoubtedly a continent that requires resilience, positivity, and patience to see through the work you put in, but it also requires a heavy dose of passion and love of the people to be successful,” introduces David Chait, General Manager at CCBB.

Chait joined the company at the beginning of 2020, with the task of putting the leadership team together and developing the future strategy for the operation. Coming from an audit

As the iconic carbonated soft drinks brand continues to expand its presence across the African market, David Chait, General Manager, discusses the operations of Coca-Cola Beverages Botswana

STEFANUTTI STOCKS – SETTING THE INDUSTRY STANDARD IN AFRICA

Stefanutti Stocks is one of South Africa’s most prominent listed construction companies. It delivers infrastructure development projects, of any scale, to diverse sectors within the built environment across South Africa and its neighbouring regions. Its decades of industry experience and steadfast delivery of excellence in execution has positioned Stefanutti Stocks as a premier brand that is built on innovation and a foundation of common values (which include an uncompromising commitment to safety and quality).

In addition to the more traditional civil engineering and construction activities Stefanutti Stocks offers specialist, niche construction expertise in the fields of fast-track data centre and industrial plant construction, geotechnical and piling, renewable energy, oil and gas (including in house pipe spool fabrication), precast concrete (manufacture and construction), bridge construction, slip forming, mechanical and piping, electrical and instrumentation, materials handling and tailings management. It is the country’s leading concrete rehabilitation, repair, and maintenance contractor.

The Group boasts technical proficiency across all of its disciplines, and offers clients a collaborative full-service package, as well as a single point of accountability for mega project delivery. It has positioned itself as an invaluable project partner, with a reputation for offering innovative solutions and a proven ability to deliver projects cost effectively, safely, on time and to the required specification and scope.

The Group’s strengths lies in:

- the solution-based culture it brings to the project teams it is involved with

- its diversity and strategic positioning within the Southern African construction landscape

- an ability to seamlessly mobilise across the group

- its technologically advanced approach to managing construction sites

- its ability to offer a single-point of accountability, removing the interface risk from the client domain

- an ability to leverage its experience in creating a support and project infrastructure in even the harshest environments

- its successful recruitment and up-skilling of local communities as part of project deliverables

- its commitment to sustainability and transformation

- its streamlined shared services, management systems and policies

A view down the Ezulwini Valley where Stefanutti Stocks Eswatini has completed a number of high profile projects including most recently the FNB Headquarters.

Capacity

In South Africa, Stefanutti Stocks is a B-BBEE Level one contributor (SA) with a Grade 9 rating from the CIDB, providing the group with unlimited tender capability. Each of its disciplines can mobilise and operate across the country as well as cross-border, should contract opportunities arise – meaning that the group's capacity and capability to undertake mega projects spans its entire geographic footprint.

Geographic footprint

The group’s geographic footprint spans all provinces of South Africa and some Sub-Saharan African countries. Stefanutti Stocks has established operations and is a highly-regarded local contractor of choice in Botswana, Eswatini, Malawi, Zambia, and Zimbabwe.

Disciplines

The combined capabilities of the Stefanutti Stocks disciplines enables the Group to offer a multidisciplinary construction solution to its clients across all the regions within which it operates.

The Group’s scope of niche and traditional engineering and construction-related activities span the disciplines of buildin, civils, geotechnical, roads and earthworks, electrical and instrumentation, mechanical (including water clarification), renewable energy (with a focus on balance of plant construction), oil and gas (including bulk tank construction and in-house pipe spool manufacturing), and mining services (spanning materials handling and tailings management).

Infrastructure

The Group constructs the full spectrum of public and industrial civil infrastructure and undertakes contracts in the transport (road, rail, and air), energy generation, heavy industrial, oil and gas, water (dams, conveyance, storage, effluent and water treatment plants), and mining sectors. The Group also boasts over five decades of experience in constructing award-winning buildings across southern Africa for the public and private sector, including global brands and international clients.

Stefanutti Stocks has an established track record of constructing and delivering data centers and associated infrastructure. Its broad spectrum of expertise, strong solution-based culture, and capacity within the construction environment – including in-house MEP and the utilisation of a BIM platform throughout the project – supports seamless (even early)

The Zimplats' Selous Metallurgical Complex (SMC) in Zimbabwe where Stefanutti Stocks is currently constructing mining infrastructure for the SMC SO2 Abatement and Smelter expansion project.

General Contracting in Africa

Stefanutti Stocks has established operations outside of South Africa that are reputed to be amongst the best general contractors in their regions. Its operations in Botswana, Eswatini, Malawi, Zambia and Zimbabwe undertake building (airports, commercial and industrial) construction projects, civil works including water treatment works, reservoirs, bridges, and dam construction, agricultural land development, as well as bulk earthworks, road construction and rehabilitation contracts. In co-operation with the Group’s disciplines, the Stefanutti Stocks Africa region can offer clients the full spectrum of the group’s capabilities which include renewables, mining services, mechanical, electrical and instrumentation, and oil and gas.

Recent Projects

In South Africa, amongst many other multidisciplinary construction contracts, Stefanutti Stocks recently slipformed the Ivan Plats headgear – one of the largest headgears constructed in South Africa to date, completed the Zandvliet Wastewater Treatment Work for the City of Cape Town, completed the SAPREF R Tanks project in joint venture with VJ Tanks SA, constructed a new 132 kV client-owned High-Voltage (HV) substation in the Western Cape, and delivered infrastructure for a new 70MeV Cyclotron for iThemba Labs.

Some current Stefanutti Stocks project highlights across the sub-Saharan continent include projects for Coca Cola Beverages, Barlow World, and a prestigious HQ redevelopment project in Botswana, the Manzini Interchange, CONCCO warehouse expansion, and a new head office for FNB in Eswatini, as well as the Lusaka Commercial Cold Store for Imperial’s Namibian Deep Catch Group, and the recently completed Radisson Blu Mosi-oa-Tunya Hotel Livingstone in Zambia.

Captions:

1. The CONCCO warehouse expansion in Matsapha, Eswatini.

2. A recently completed new 132 kV client-owned High-Voltage (HV) substation.

3. The two 24,307m3 fuel storage tanks that were designed and constructed for Transnet.

4. The recently completed Manzini Golf Course Interchange project for Eswatini's Ministry of Public Works and Transport.

mixed-use

A view of the completed Radisson Blu Mosi-oa-Tunya Hotel Livingstone, a premier sustainably focused river-front resort, with 200-rooms and countless luxury facilities.

and chartered accountant background, he relished the opportunity to work for such a universally recognised company.

“I didn’t set out to join the beverage industry, but I consider myself especially lucky to be a part of a company that sells the world’s leading brand,” he shares.

AN AFRICAN ADVENTURE

Coca-Cola was first imported into Africa in 1928 and the bottling of the product began in 1940. Currently, CCBA serves 15 countries on the subSaharan continent.

Meanwhile, within Botswana, CCBB has depots in Gaborone and Francistown in the north, and the recently opened Palapye in the central region, in addition to the distributors

TAKING ACTION

As TCCC encourages inclusion in initiatives such as the World Without Waste programme, and Youth Entrepreneurship Training, it is a relationship that CCBB is keen to cultivate.

• World Without Waste Programme: The initiative entails training women on incomegenerating waste collection, which also helps in cleaning up the environment. Specifically, trainees will collect PET plastic bottles which are then sent to recyclers for further processing.

• Youth Entrepreneurship Training: Youth unemployment is rampant in Botswana; therefore, companies can assist participants by contributing towards imparting skills, giving the younger generation a chance to start a sustainable business.

in the northern town of Kasane, and Maun in the northwest. With a population of just over 2.4 million, CCBB is able to reach consumers through the supermarket channel, and wholesale channel which feeds into general trade.

“We sell directly to 800 outlets, in addition to the 3,200 outlets across Botswana that purchase from the wholesalers or distributors,” outlines Chait.

Today, TCCC has a continent-wide presence, operating in all countries and territories across Africa with 46 bottling partners. Hiring locally and sourcing regionally, the company has made an impact on economies and taste buds alike.

Every job created directly generates between 10 and 16 others indirectly. Everyone involved in the Coca-Cola supply chain makes money through the production, distribution, and sales of the brands.

CCBA is the eighth largest bottling partner worldwide by revenue, and the biggest on the continent, serving 15 countries in sub-Saharan Africa. Meanwhile, TCCC itself refreshes consumers and communities in all 54 countries on the continent.

Although it is the only soft drinks manufacturer in Botswana, for Chait, the benefits far outweigh the challenges.

“Being a cornerstone business that contributes to local employment and communities is extremely important for CCBA as a group,” he says.

TASTE THE DIFFERENCE

Although TCCC produces over 100 different drinks in Africa, with many tailored to local tastes, the strategy is always the same: the product should always be within reach.

CCBB produces a plethora of colourful flavours from Fanta grape, and pineapple, to Sparletta Pine

David Chait, General Manager (right), discusses operations

Nut, and Stoney ginger beer. The company also produces Botswana’s legacy brand, Bonaqua Source Water, previously known as Source Water.

“We must forge our own way forward to resonate with consumers, and not just copy and paste what works in other markets around the world. The opportunities to create new ideas and see them to conclusion is what drives the continent as an exciting space to work in,” reinforces Chait.

The company has grown significantly since its inception in 2018, when it became a subsidiary of CCBA, and

now employs 500 people compared to its original number of 200.

Although CCBB operates out of Gaborone, producing polyethylene terephthalate (PET) packs of 2 litre (L), 1L, and 600 millilitres (ml) across most Coca-Cola brands, with Coca-Cola being the major brand in the market, the company cannot produce everything in-country.

“Where we don’t have the capacity, we import additional requirements from South Africa. We also bring in various brands such as Schweppes, Cappy Juice, Monster,

Predator Energy, and Mazoe Crush to add to the menu of beverages,” he reveals.

The carbonated soft drinks mentioned above sit alongside Fanta, Sprite, Stoney, and the Sparletta range of Creme Soda, Pine Nut, and Iron Brew.

“The group vision is to refresh Africa every day and make the continent a better place. Through our investments in people, networks, and community, we aim to place an ice-cold beverage into their hands wherever they may be. Whether you are living in Gaborone or a small village near Shakawe, the quality and experience will be the same,” explains Chait.

Coca-Cola is a heritage brand that has been around for generations, and consumers associate it with quality, consistency, and trust, all of which are traits that resonate with both customers and partners.

“AFRICA IS UNDOUBTEDLY A CONTINENT THAT REQUIRES RESILIENCE, POSITIVITY, AND PATIENCE TO SEE THROUGH THE WORK YOU PUT IN, BUT IT ALSO REQUIRES A HEAVY DOSE OF PASSION AND LOVE OF THE PEOPLE TO BE SUCCESSFUL”

– DAVID CHAIT, GENERAL MANAGER, COCA-COLA BEVERAGES BOTSWANA

CCBB Leadership Team

“Through our range and our passion, we believe we can offer the customer and consumer what they want, when they want it.”

A SUSTAINABLE SOFT-DRINK

CCBA, and its subsidiary CCBB, is prioritising expanding its production in a sustainable way.

CCBA is an industry leader in developing sustainable solutions for manufacturing and distribution. The company’s mantra of ‘People matter. Our planet matters’ is evidenced by its sustainable sourcing.

Consumer well-being, water use efficiency, reduction in carbon emissions, efficient energy use, sustainable packaging, waste management, and women, youth and people with disabilities empowerment are all equally important to the company.

“We believe in doing business the right way by following our values and working solutions that benefit us all.

Profitability is important, but not at any cost,” observes Chait.

CCBB is commissioning a new PET production line in May this year, which will double the PET production capacity in-house.

“The entire project is costing over USD$20 million and will see the local operation self-sufficient on all core brands and able to meet our customer demands for the foreseeable future,” Chait informs us.

As the new line can produce a wider range of 2L PET products, it offers

greater flexibility when responding to consumer requirements. Designed to be more energy efficient, therefore mitigating the environmental impact and energy costs, it also incorporates improved safety features, reducing the risk of accidents.

“In preparation for the investment, in line with Coca-Cola standards, CCBB recently commissioned a wastewater treatment plant to ensure that clean water is put back into the municipal system after going through the plant,” he shares.

CCBB takes delivery of new equipment enabling the company to develop sustainable solutions for manufacturing and distribution

FACTS AND FIGURES

CCBB

• 15 brands

• One plant

• 539 employees

• USD$80 million revenue

CCBA

• 40 bottling plants

• 17,000 employees

• 15 territories

• 680,000 outlets

• 122 production lines

• 40 brands manufactured

TCCC

• 145 bottling plants

• 70,000 employees

This is in line with CCBB’s commitment to the environment, and continent, to operate sustainably.

of the plastic that we give to our customers taken for recycling. We are in the early stages of the process and will witness it ramp up over the next few years,” says Chait optimistically.

Furthermore, the investment will provide employment and open potential export opportunities to neighbouring countries.

“CCBB is acutely aware of the need to look after our environment and the impact plastic has on the world. We have been collaborating with our group, local businesses and communities to help create a sustainable PET recycling supply chain in the country.

“It has been slow, but it remains a key ambition to have 100 percent

CCBB has pumped a USD$2 million investment into a new effluent plant to ensure clean water enters the municipal system and take strain off the municipality. CCBB also introduced water recovery within the plant and re-uses water from the production plant for the facility’s cooling towers, ablutions and cleaning.

TCCC and its bottlers aim to achieve at least 100 percent water balance globally. The use of water efficiency initiatives and technologies has resulted in water usage decreasing substantially over the past several years.

FUTURE COMMITMENTS

Packaging is an important part of modern life, but there is an ongoing issue with waste management. Together with TCCC, CCBB realises it has a responsibility to help solve the

New production line equipment being installed

problem. By becoming part of the sustainable packaging initiative called World Without Waste, the company has committed to investing in the planet.

This has led to certain goals and priorities for the year ahead, with plans to open a new canning and bottling line and a production facility.

The target is to grow and win the market through execution excellence and customer satisfaction. The company is able to implement innovation, and work with marketing teams to make sure these are visible.

“Our immediate target is to commission the new line and adapt to the new reality of having excess capacity. The business needs to adapt to ensure optimal stock holding across packs and blend it with the most efficient production scheduling,” observes Chait.

“We are currently operating out of

three rented warehouses in Gaborone. Our long-term vision is to consolidate under one roof to represent the identity of CCBB.”

With the installation of the new line, there will be greater availability and diversity of products for the consumers. The line allows for greater innovation in packs and the ability to locally produce what was previously outsourced to another country.

“CCBB will be able to meet consumer demand, which we have struggled to do over peak periods,

relying on availability from South Africa to supplement the shortfall. Besides expanding the production and distribution chain in the company, this investment will also promote employment, bringing gains not only for our organisation, but also for the country,” he details.

ENCOURAGING EXCELLENCE

Earlier this year, CCBB supported an interactive workshop focused on building and growing sustainable enterprises for informal merchants

“THROUGH OUR RANGE AND OUR PASSION, WE BELIEVE WE CAN OFFER THE CUSTOMER AND CONSUMER WHAT THEY WANT, WHEN THEY WANT IT”

– DAVID CHAIT, GENERAL MANAGER, COCA-COLA BEVERAGES BOTSWANA

CCBB donates water tanks to the local community

INFLUENCING WHAT, WHEN AND HOW SHOPPERS BROWSE AND BUY ACROSS MULTIPLE TOUCHPOINTS.

and traders. The aim was to hone business skills using practical exercises and team competitions.

The company’s mission was to create a greater shared opportunity for businesses and communities through economic inclusion initiatives such as entrepreneurial training for the 76 participants.

“Opportunity is more than just money; it is about a better future for people and their communities everywhere in the African continent,” says Chait.

It is clear that donating time and expertise is as important as donating money, and CCBB takes community responsibility seriously.

“We aim to create inclusive growth opportunities for women, youth, and people with disabilities by defining a consistent way of implementing economic inclusion programmes drawing on leading practice.”

CCBB chooses to deliberately empower women, youth and people

with disabilities as traditionally marginalised groups.

“We have an ongoing strategy called Women in Leadership, where our end goal is to train women within the business, so eventually, they can be promoted into leadership roles. Even with our recruitment strategy, we try to encourage women and youth to apply,” Chait states proudly.

One of CCBA’s values is centred on encouraging excellence through world-class execution, processes, and performance. Its employees are considered valued participants,

therefore high performers are always recognised and rewarded.

“We motivate them to continue flourishing by giving them sustainable incentives,” affirms Chait.

Along the same lines, CCBB is in open discussions with Botswana Council for the Disabled over ongoing projects for people with disabilities as a means to create job security.

As TCCC and its subsidiaries continue to campaign for an economically fairer and more ecofriendly Africa, all eyes are fixed on what the carbonated drinks manufacturer does next for the continent. COCA-COLA

OMasendu@ccbagroup.com

www.ccbagroup.com

CCBB built this sports storeroom as a reward for plastic bottle collection

David Chait, General Manager congratulates the winner of the CCBB FIFA competition

The Plastics People

KPI Group, comprising of Plastech (Pty) Ltd. (Sales Wing) and Sun Plastics (Pty) Ltd. (Manufacturing Wing) has been in the field of providing innovative flexible packaging solutions to the southern African region for the past 40 years.

Based in Gaborone, Botswana, and with distribution in South Africa, Namibia, Zambia and Zimbabwe, Sun Plastics is a state of the art manufacturing facility with A-Category BRC Rating, capable of providing solutions for the packaging requirements of all segments of industry. With its advanced technology and highly motivated quality conscious work force, the group has been able to build a happy and loyal customer base through quality products and timely deliveries.

Technical Capabilities

• Extrusion from Mono Layer to 7 Layers and automatic thickness control capable of producing Barrier / Non-Barrier films.

Up to 10 Colours printing.

Lamination with a wide range of configurations including different types of sealing layers and anti-fog properties.

• Bagmaking and Pouching capable of producing bags with different types of sealing and other customisations.

Environmental Policy

We will strive to reduce the amount of polymer in packaging products. Where it is technically and financially justified, use biodegradable materials.

• To make the maximum practical use of recycled materials in packaging.

• To use materials that can ultimately be recovered from the waste stream for further productive use.

• To use materials that can be land filled if no other handling method is available. Have a state of the art EREMA in house recycling machine to ensure all waste is recycled and put back into the system.

Minet Botswana Holdings (PTY) LTD

We have three subsidiaries, offering the following:

MINET BOTSWANA

• Short Term Insurance

• Long Term Insurance

• Staff Schemes

• Umbrella Credit Life

• Umbrella Group Life

• Individual Life Insurance

• Agriculture Insurance

• Cyber Insurance

• Construction

• VIP Schemes & Pension Schemes

• Reinsurance

• Alternative Risk Transfer

• Options Mining

• Corporate Insurance

MINET BOTSWANA RETIREMENT SOLUTIONS

• Pension Fund Administration

• Provident Fund Administration

• Retirement Annuity Consulting

• Retirement Fund Advisory Services

• Retirement Planning

• Umbrella Pension Fund

• Umbrella Provident Fund

• Individual Member Retirement Fund

• Preservation Funds

Plastech (pty) Ltd

PPlastech (Pty) Ltd.

Plot 14448, Kamushongo Road

Gaborone (W) Industrial Gaborone, Botswana

Postal Address

P.O. Box 20529, Gaborone

T +267 3914182

F +267 3914827

E sales@plastech.co.bw

BACKGROUND INFORMATION

Sun Plastics

Plot 21337, Phakalane Gaborone, Botswana

Postal Address

Sun Plastics is the manufacturer and distributer of innovative and advanced Barrier Flexible Packaging within Southern Africa. We have over 40 years of flexible packaging manufacturing experience within the region and we dedicate our time to produce the most technologically advance film and offer quality and service to all our valued customers. Sun Plastics is based in Gaborone, Botswana. With trading depos and warehouses set up in Johanessburg and Cape Town repectivly The production plant is a world class operation complying with a number of international rating systems. Most recently the factory achieved an A-category BRC rating.

P.O. Box 20529, Gaborone

T +267 3922719

F +267 3914827

E sales@plastech.co.bw

www.sunplastics.co.bw

MINET BOTSWANA RISK MANAGEMENT & CONSULTING

• Underwriting, Engineering and Fire Risk Surveys

• Asset Valuations (Including Plant & Machinery & Motor Vehicles)

• Management of Construction Risk

• Continuous Risk Improvements (CRI)

• Occupation Safety & Health Act Compliance Audits

• Enterprise-Wide Risk Management (EWRM)

• Business Continuity Management (BCM)

• Project Risk Appraisals

• Risk Profiling

• Cyber Risk Assessments

• ESG (Environmental, Social and Governance) Risk Surveys

www.minet.com/botswana Gaborone: +267 361 7300, Francistown: +267 241 2191 info@minet.co.bw

Risk.Reinsurance.People