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• Company grows sales volumes by 900% percent over 20 years of Ugandan ownership
• Sales grow from 2million raw cases (2.4m 8 oz cases) of soda in 1993 to 20million raw cases (25m 8 oz cases) in 2013.
Kampala, April 15th 2013- 20 years after the ownership of the former government-owned Lake Victoria Bottling Company was transferred to Crown Beverages Limited- a company owned by 3 local shareholders, there is cause to celebrate, thanks to years of investments and stable management that has seen the company grow and is on course to become an industry leader in the heavily competitive Carbonated Soft Drink (CSD) industry.
Lake Victoria Bottling Co. Ltd started production in 1951 as the franchisee bottler for PepsiCo, but was in 1993 privatized to a consortium of local investors, who renamed it Crown Bottlers Ltd. In 1997, International Pepsi-Cola Bottler Investments, a South African firm acquired a 51 percent stake in the company and renamed it Crown Beverages Ltd. In 2001, the 3 local shareholders, Amos Nzeyi, Chris Kayoboke and Dr Margaret Kigozi re-acquired 100 percent control of the company.
Following decades of investment that has seen 4 new glass bottling lines and 1 plastic packaging line added to the Nakawa-based plant and several new products introduced, the company today has witnessed unprecedented growth and is today one of the leading employers and tax payers in the country.
“Over the last 20 years, we have made significant investments into new products, bottling lines thereby creating more demand and loyalty for our brands. The market has rewarded us with more loyalty, allowing us to grow our sales volumes from by 900% from 2milllion raw cases (2.4m 8 oz cases of soda) in 1993 to 20m raw cases (25m 8 oz cases) in 2013 6, ” said Amoz Nzeyi, Crown Beverages Executive Chairman.
Nzeyi, who was speaking at stakeholder dinner to mark the 20th anniversary, held at Kampala Serena Hotel, said that following 20 years of solid and profitable performance, the company, had set a foundation for a more robust growth.
“The last 20 years have been such a great experience. We believe, we have set a more solid foundation on which we shall build an even greater company over the next 20 years so as to leverage growth opportunities within Uganda. I have no doubt that with the support from PepsiCo, a dedicated local team as well as the huge love from our consumers; the next 20 years, will be even greater,” he said.
The dinner was attended by among others Rt. Hon Amama Mbabazi, the Prime Minister of the Republic of Uganda, Saad Abdul-Latif, PepsiCo Chief Executive Officer for Asia, Middle East and Africa (AMEA) and Mr Sanjeev Chadha, PepsiCo President for Middle East and Africa (MEA) region.
Simon Lugoloobi, CEO Crown Beverages, attributed the growth of the company to consistent investments into the right product mix that has offered consumers more choice as well as the brands’ unswerving engagement with their consumers, which has increased loyalty and created stronger relationships.
“One of our major success stories in the past 20 years has been our ability to not only grow the strength of our existing brands but the ability to bring new brands to life and oversee their successful growth into key brands,” he said, adding: A case in point is Mountain Dew that was launched in the market 4 years ago but has grown to become one of Uganda’s most loved Soda brands appealing to consumers all over the country. This plus the staying power of Pepsi and Mirinda have helped catapult us to a position where our brands are some of the most highly rated in the market.”
The company’s brand portfolio includes: Pepsi-Cola, the flagship brand, Mountain Dew Mirinda (Fruity, Orange, Pineapple and the recently launched Mirinda Green Apple), 7UP and Evervess. These are available in 300ml returnable glass bottle, 500ml, 1 litre and 2 litre recyclable plastic bottles. The company also bottles mineral water under the Peak brand.
Saad Abdul-Latif, reiterated PepsiCo’s growing interest in Africa and said that the global foods and drinks giant, is committed to consolidating its recent gains in Uganda and elsewhere on the continent, as the next drivers of growth.
“Africa is the next Asia. The continent is the developing world’s next great success story and at PepsiCo we want to be right at the centre of that success story, working with local teams to leverage our years of best practices and the world’s best brands so we can together match to a great future,” he said, adding: “We are very committed, to continue building Crown Beverages into an outstanding business and given our achievements over the last 20 years and the tremendous potential we see in Uganda, nothing is going to stop us.”
Mbabazi, praised the staff, management and directors of Crown Beverages for their resilience, hard work and setting a good example to other Ugandan entrepreneurs.
“I am proud to stand along with the board, management and staff, but most importantly, millions of your consumers and thump my chest and say- We have made it; because the success of every Ugandan business is ultimately a success for all of us.
He also said that the success of Crown Beverages is a national treasure and an opportunity for all Ugandans to learn about the importance of resilience, honesty and hard work as key elements of success.
“The Crown Beverages story is one of those inspiring stories that should be shared with many of our entrepreneurs and owners of start-ups who are still struggling. They need to understand that success is not an overnight affair and nor is it a smooth road- but rather a result of hard work, resilience and personal sacrifices – all towards a common vision,” he said.
Vivo Energy donates school materials to Kiswa Primary School
By Our Reporter
Vivo Energy Uganda, the company that distributes and markets Shell branded fuels and lubricants in Uganda, has visited Kiswa Primary School in Bugolobi, Kampala and donated school materials and sanitary towels worth Fifteen million Uganda shillings to enhance its Schools’ Education Support programme.
The donation was handed over by Vivo Energy Uganda Managing Director, Mr. Gilbert Assi in the presence of the school community, Vivo Energy Group Chairman, Mr. John Daly, Non-Executive Director, Ms. Hixonia Nyasulu, Executive Vice President for East and Southern Africa, Mr. Hans Paulsen and staff.
Kampala Capital City Authority’s Director of Education and Social Services, Miss Juliet Nambi Namuddu was the guest of honour at the colourful function that was also attended by the Mayor of Nakawa Division, Hon. Ronald Bamwezo under whose jurisdiction the school is located.
Speaking at the school visit, Mr. Gilbert Assi remarked that education is one of Vivo Energy’s priority areas of community investment. “We believe in empowering the future generation of leaders by giving them opportunities to learn. We hope that the support that we have given to this school today will in turn lead to improved literacy, better grades and overall improvement of the school’s performance.”
He added, “Vivo Energy Uganda’s Schools’ Road Safety Education programmes have in the past five years trained pupils in over 120 primary schools as road safety ambassadors. Kiswa Primary School was one of the first schools that we approached at the time. We are pleased that this relationship has progressed to the point where we are confident in the abilities of the children to support fellow children to observe safe road practices. We focus on children as the future drivers in order to inculcate in them a culture of road safety at a young age. Children can also be effective in influencing their parents’ behaviour and through these efforts, we would like to win them over first as a way to reach their parents.”
Ms. Aisha Bagaya Ntege, the Head Teacher of Kiswa Primary School commended Vivo Energy Uganda for identifying the school’s challenges and supporting the administration to address them. “Our school population consists of over 2000 children, drawn from the less fortunate communities near and far from our location. We try our best to manage the existing challenges such as limited learning resources, nutrition, absenteeism of female students due to poor management of menstruation and more. I am delighted that companies such as Vivo Energy Uganda have a heart for the communities around them and reach out to support education. We appreciate this gesture.”
KCCA Director of Education and Social Services, Ms. Juliet Nambi Namuddu expressed her appreciation to Vivo Energy Uganda for supporting education in Uganda: “On behalf of KCCA, that manages public schools in the city, we commend Vivo Energy Uganda for continually partnering with us to make education experience for the children less of a challenge. We encourage like-minded organisations to join us in a similar initiative.” Adding, “It is a sad reality that one out of 10 African girls skip school or drop out of school entirely due to lack of menstrual products and proper access to proper sanitation according to United Nations Children’s Fund. However, this hindrance to the education of female students is now a priority for the KCCA and for the Ministry of Education.”
Vivo Energy Group Chairman John Daly and Non-Executive Director, Ms. Hixonia Nyasulu are currently in the country on a business familiarization tour of Vivo Energy Uganda.
Coca-Cola Beverages Africa contributes to improved access to clean drinking water for vulnerable households
By Our Reporter
Coca-Cola Beverages Africa in Uganda, through Century and Rwenzori Bottling Companies, has launched a collaboration with Nyonta Relief to provide increased access to safe water for vulnerable households in Ndeeba, in Kampala.
Supporting the project “Nyonta Tree For Life”, Coca-Cola Beverages Africa will supply 100 ‘Nyonta Kits’ to families in Ndeeba, which will give them clean drinking water for use in their households for drinking, cooking and other uses.
The Nyonta Kit uses gravity to purify over 100 LPD of any water from a fresh water source making it safe for human consumption. The contribution is valued at UGX33million and will go to 500 people in the Ndeeba community.
Conrad van Niekerk, Managing Director of Century and Rwenzori Bottling Companies, said the company support to the vulnerable communities in Ndeeba was underpinned by the belief that all people around the world deserved a chance to access safe water for life.
“It is therefore critical for us, as part of the world’s leading beverage company, to use water responsibly in our operations and also lead in giving it back. We work to protect local water resources and provide safe, clean drinking water to communities in need,” he said.
He said water was a key issue for the Coca-Cola system around the world and pledged that the company would continue using water responsibly to ensure that the bottling operations in Uganda reduced water use and supported the provision on safe, clean drinking water to communities.
Explaining the project, Nyonta Relief Patron, Hon. Joyce Nabosa Ssebugwawo, said that in Uganda, it is estimated that 33 children die every day due to diarrhea from contaminated drinking water.
“That is why we launched the ‘Anti33’ campaign; to bring together people and organisations who feel the moral obligation to help reduce the number of children dying of preventable drinking water diseases. We are happy that Coca-Cola Beverages Africa has joined us today,” she said.
Hon. Ssebugwawo further noted that since mothers are the custodians of household health, ensuring the availability of drinking water in homes is their direct responsibility. She encouraged all women to join the campaign.
“Having access to clean drinking water is key to a healthy life. Additionally, availability of clean drinking water has the power to encourage gender equality, stable education for children in a home and income generation for mothers who will have ample time since sickness in a home is eliminated.” She added.
It is worth noting that millions of people across the world are deprived of this essential need. The issue is particularly problematic in Southern Africa. According to UNICEF, in Uganda it is estimated that 60% of the population has no access to potable water, leading to the death of 33 children every day.
The Ministry of Water and Environment in July this year presented Coca-Cola Beverages Africa with an award for Water Usage Efficiencies at the Mbarara Plant, after a sector audit covering 24 companies in Uganda.
Local farmers exposed to modern farming practices
By Our Reporter
On Tuesday, Agilis Partners, an agricultural development company, hosted smallholder farmers to a farmers day event where they exposed the farmers to modern farming practices in a bid to help them improve the quality and quantity of their yield. The event which was held at one of the company’s farming units in Kigumba, Kiryandongo district was attended by hundreds of farmers from sorrounding areas.
The farmers were introduced to the advanced farming techniques used on the Agilis farm throughout the lifecycle of the crops from proper land preparation to good post-harvest handling and storage practices.
Sitting on over 15,000 hectares of land, the Agilis farm is divided into four different units with the main crops grown being maize, sunflower and soyabean. The farming is highly mechanised with two production systems which are harrowing(use of tractors to prepare the land) and conservation farming(a system in which the soil surface is not broken).
According to Jadribo Martin, the agronomist in charge of smallholder farmers at Agilis, they have repackaged their farming protocol into an easy to understand document which has then been shared with the farmers.
“The document is divided into three stages – growth stage, business planning and investment stage. This way farmers are able to go and replicate our mode of operation at their own farms,” he noted.
With a vision to make Uganda the continent’s food basket, Benjamin Prinz, the Agilis co-managing partner postulates that there is infinite potential in the sector which can be realised if all stakeholders work together from investors, to smallholder farmers as well as other industry players.
“We have the capital and technical know-how to maximise our yield as well as access to markets. It is therefore our responsibility to share this knowledge, resources and markets with the community.” He explained. “We do not only invest in land and farming activities but also partner with farmers to help them co-market their grain with us. This way the whole community benefits and promotes their well-being.”
Founded in 2013, Agilis Partners operates two different companies; the Joseph Initiative Limited which is one of the leading exporters of grains from Uganda to the East African region and Asili Farms which is one of the largest farming companies in Uganda. The company’s main customers are food manufacturers, aid organizations and protein producers with in the region.
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