News / National
Delta, Coca-Cola still negotiating over notice of termination
10 May 2018 at 21:07hrs | Views
Zimbabwe Stock Exchange (ZSE) listed blue chip counter Delta Beverages says negotiations are still ongoing with the Coca-Cola Company following a notice issued last year to terminate its bottling agreement with the firm.
The notice to end the bottler's agreement follows Coca-Cola's announcement in 2016 to acquire SABMiller's stake in Coca-Cola Beverages Africa (CCBA).
Permutations on the impact of this pointed to a scenario were the firm could lose at least a third of its income and its ability to satisfy demand for its sparkling beverages line.
Announcing its financial results for the quarter ending 31 March 2018, the chief executive at the firm, Mr Pearson Gowero is confident of sustaining operations.
The company posted strong growth on its product lines for the period under review with operations expected to achieve further strides going forward boosted by an improved operating environment.
The company said it has since invested $45 million to the central bank for onward lending to key sectors, a further boost to current efforts to reviving operations in the manufacturing sector.
The notice to end the bottler's agreement follows Coca-Cola's announcement in 2016 to acquire SABMiller's stake in Coca-Cola Beverages Africa (CCBA).
Permutations on the impact of this pointed to a scenario were the firm could lose at least a third of its income and its ability to satisfy demand for its sparkling beverages line.
The company posted strong growth on its product lines for the period under review with operations expected to achieve further strides going forward boosted by an improved operating environment.
The company said it has since invested $45 million to the central bank for onward lending to key sectors, a further boost to current efforts to reviving operations in the manufacturing sector.
Source - zbc
