JOHANNESBURG – Zimbabwe Stock Exchange (ZSE) listed blue chip counter Delta Beverages says negotiations are still ongoing with the Coca-Cola Company following a notice issued last year to terminate its bottling agreement with the firm, Bulawayo 24 reported.
The notice to end the bottler’s agreement follows Coca-Cola’s announcement in 2016 to acquire SABMiller’s stake in Coca-Cola Beverages Africa (CCBA).
The impact of this is a scenario where the company could lose at least a third of its income and its ability to satisfy demand for its sparkling beverages line.
Chief Executive Pearson Gowereo said he was confident of sustaining operations after he announced Delta Beverages’ financial results for the quarter ending March 31 with the company posting strong growth for the period under review.
Operations expected to strengthen in the future under an improved operating environment with the company investing $45 million to the central bank for onward lending to key sectors, a further boost to efforts to revive operations in the manufacturing sector.
– African News Agency (ANA)