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Eight thousand black workers at Coca-Cola Beverages South Africa (CCBSA are set to own 20% of the beverage company in a new black economic empowerment (BEE) share scheme. Workers currently hold about 5% of Coca-Cola equity.
The deal is part of the conditions of Coca-Cola’s 2016 merger with former partner SABMiller, now part of brewer Anheuser-Busch InBev.
The Competition Tribunal on Thursday said the deal can go ahead subject to several conditions, including increased worker ownership in the beverage company as well as obligations relating to localisation and procurement.
CCBSA has also struck a deal with the Department of Trade, Industry and Competition (dtic) that includes an R80 million investment over three years towards localisation initiatives.
CCBSA will also collaborate with its sugar suppliers in South Africa to increase the volume of sugar procured by CCBSA from black sugarcane farmers.
The move to increase procurement from black sugarcane farmers will see CCBSA and other industrial retailers and users of sugar procure at least 80% of their sugar needs from local sugar millers in 2021.
This amount is expected to increase to 95% by 2023, according to Minister of Trade, Industry and Competition Ebrahim Patel.
For more on this story visit www.moneyweb.co.za (excerpt republished with permission)
Article by Thando Maeko
