Coca Cola to Invest Sh 5.5 Billion in Country

Nairobi Star (Nairobi)

Samuel Otieno

24 June 2011

International soft drink company Coca Cola will invest Sh 5.5 billion in the Kenyan market in the next two years to cater for the growing market demand, it’s country manager said in Kisumu yesterday.

Jorsen Patten said that the company will invest the money through Coca-Cola franchise companies through out the country and will target all its brands.

Patten spoke at Kisumu Equator bottlers limited when he unveiled a Sh.1.5 billion production plant aimed at boosting supplies to meet the growing demand in the western Kenya. “The facility installations are a part of the Sh5.6 billion (US$62m) investment by the Coca-Cola system in Kenya and will be spent in developing plant upgrades, new production lines and human capital over the next two years”, said Patten.

He said Equator Bottlers expansion plan fits well with Coca-Cola’s strategy aimed at doubling its business in the next nine years and fast-tracking production capacity in the region. “We believe this is going to bring about significant multiplier effect on the economy of Western Kenya and help boost incomes of many people who will now benefit from the Coca-Cola system,” he said.

The new production plant is expected to help EBL to increase its production capacity to 36,000 bottles per hour. Further investments will be made in a second new, fully-automated line with the same capacity, costing Sh500 million to supply the region. The new capital injection will also go towards expanding Equators sales team.

Speaking during a press tour of the new facility, EBL Managing Director, Manubhai Patel, said the investment will help boost the firm’s business to position it appropriately for the economic expansion in the region and prepare it for changing consumer needs. “These investments will help us to move to the envisaged accelerated growth model supported by the huge investment in the new plant, which will come with improved efficiencies, high productivity and state-of-the-art working environment,” he said. The new plant is well equipped with the latest technology deploying a mechanism that ensures efficiency and minimizes production costs.

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