Delta grows soft drink distribution network

THE Competition and Tariff Commission (CTC) has approved a transaction that will see Delta Beverages expanding its soft drink footprint and distribution network in Manicaland province.

In a statement, the company said the deal, which would not result in job losses will see The Coca-Cola Company (TCCC) extending its sparkling beverages franchise arrangement to cover Manicaland.

“Delta Beverages is pleased to announce that following the approval of the transaction by CTC, TCCC has extended its sparkling beverages franchise arrangements to cover Manicaland province,” it said.

The agreement consolidates the agreement it has with Mutare Bottling Company.

“This cements the agreement between Delta and Mutare Bottling Company, who were operating in the franchise territory, for Delta to purchase the operating assets of Mutare Bottling Company.

“This transaction provides an opportunity for the group to provide its range of products across the entire Zimbabwean market,” said the company.

Delta believes that its customers and consumers in Manicaland would have access to the wide range of TCCC’s brands and packs.

This, it said, also allows the optimal utilisation of the existing assets, including the Mutare Bottling plant and the distribution footprint.

“The transaction has received regulatory approvals.”

Last year, Delta renewed its bottlers agreement with the TCCC to run for the next three years.

This followed the merger of AB InBev and SABMiller Plc in October 2016 and the subsequent agreement in principle reached between TCCC and AB InBev to explore options to restructure the bottling operations in a number of countries. –chronicle.cl.zw