African Pioneer Group buys 17.5% stake in Appletiser

8th May 2017

By: Anine Kilian

Contributing Editor Online

     

Font size: - +

Coca-Cola Beverages South Africa (CCBSA) has sold 17.5% of its shareholding in Appletiser South Africa (ASA) to black-owned investment company African Pioneer Group (APG).

A further 4% stake in ASA has been sold to black empowerment partner Sipho Excellent Madlala.

The sale meets one of the merger conditions agreed with the Competition Tribunal in relation to the creation of CCSBA last year.
 
Appletiser was previously wholly owned by SABMiller but with the merger, ASA became a subsidiary of CCBSA, the South African operation of Coca-Cola Beverages Africa (CCBA). 
 
Following the brand sale, the operating model of ASA changed from one of an owned-brand production company to a licensed manufacturer of The Coca-Cola Company (TCCC) brands.
 
“Merger conditions stipulated that ASA’s operations in Elgin will be maintained and that CCBSA will sell 20% of Appletiser in South Africa to a black economic empowerment holding, which we have concluded ahead of the required timeline,” CCBSA MD Velaphi Ratshefola said in a statement on Monday.
  
He added that there were plans for ASA to produce other TCCC brands, in addition to Tisers, that are currently produced at the other CCBSA manufacturing sites.

“With the addition of 200 ml, 330 ml and 440 ml cans of other Coca-Cola products, the facility will produce around five-million cases which is more than prevailing volumes at the time of the merger,” he noted.
 
Under the terms of the merger agreement, at least 80% of the apples, pears, grapes and similar fruit inputs used for all juice concentrate used in producing Tiser products will be procured from fruit grown in South Africa, and plans are in progress to increase the procurement of South African grapes for juice concentrate in Grapetiser over the next five years.

Currently, all apple and pear concentrate is sourced from South Africa, with grape concentrate increasingly sourced locally, depending on availability and affordability of supply.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION