HomeNewsSchweppes acquires $12,5m plant

Schweppes acquires $12,5m plant

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Schweppes Zimbabwe Limited plans to commission a $12,5 million juice production line at its Harare plant by December this year, a move that would boost its production capacity.

Speaking on the sidelines of the signing of the Competition Compliance Programme and Agreement with the Competition and Tariff Commission (CTC) on Thursday, Schweppes Zimbabwe Limited managing director Charles Msipa said the production line would increase the company’s production lines from the current three to four.

“We have ordered a new production line and civil works have already started. The new line of production is expected in the country in September this year while operations will commence in 2012,” said Msipa.

Delta Beverages own 49% while 51% is held by Waterton Investment (Pvt) Ltd (that comprises Schweppes employee share trust) and the executive (beverages partners).

Msipa said the company was enjoying a 65% market share in the cordials market and 15% in the water market.

The agreement with CTC is aimed at ensuring that the company does not abuse its market dominance by engaging in unethical business practices.

Msipa said the company will roll out staff training on the agreement in August this year after the Schweppes board meeting next month.

He said the board would appoint a compliance commission and a compliance officer as part of measures to ensure the agreement is implemented.

Speaking at the same occasion Competition and Tariff Commission commissioner Alexander Kububa said the signing of the agreement was a milestone in the creation of culture of competition in the country.

Kububa said the compliance agreement was aimed at enterprise efficiency and development in that it forces firms to become efficient and to be innovative.

“Schweppes Zimbabwe’s willingness to comply with the country’s competition law shows the company’s commendable efforts of maintaining its position as an exemplary market leader and good corporate citizen,” said Kububa.

“Even though the idea of this competition compliance programmes that has been signed today was initiated by the commission, the formulation and drafting of the programme was done by Schweppes Zimbabwe.”

Some of Schweppes’ products include sparkling water, Mazoe Orange crush, Ripe and Ready and the Minute Maid brand among others.

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