Coca-Cola to invest $90m in Kenya
In a bid to deepen its footprint in the African market, soft drink giant Coca-Cola, said it has concluded plans to invest about $90million in Kenya over a period of three years beginning from 2018 to boost its products in the country.
This is coming less than one month after the company announced a $600million dollar investment in Nigeria. The investment in Nigeria will be used to expand its offering of drinks to include flavoured and condensed milk, ice tea and bottled water to meet demand in Africa’s biggest economy.
Coca-Cola made the disclosure in a statement in Nairobi, where it hinted at launching new range of soft drink brands into East Africa’s biggest market come 2018.
Coca-Cola, which is the leader in the Kenyan soda market with brands like Coke and Fanta, said it had invested a total of $17 billion in Africa since 2014, an amount that doubled what was invested in the continent a decade before.
The group, however, faces growing competition in Kenya from other soft drinks producers like SABmiller and PepsiCo.
In related development, Coca-Cola reported a jump in third-quarter profits Wednesday due to lower expenses as it broadens offerings of non-cola drinks to offset sluggish demand for its namesake product in North America.
Earnings for the quarter ending September 29 came in at $1.4 billion, up 38.3 percent from the year-ago period.
Revenues fell 14.6 percent to $9.1 billion due to the re-franchising of bottling operations.
Coca-Cola said earlier this month it was acquiring Mexico’s Topo Chico sparkling mineral water brand to distribute it more widely in the US. The company also launched Dunkin’ Donuts bottled iced coffee earlier in the year.
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