Maravi

(HERALD) Schweppes records 33pc volume growth for 2011

COMMENT - This is excellent. (Now for the other 49%.)

Schweppes records 33pc volume growth for 2011
Friday, 02 December 2011 00:00
Fanuel Kangondo Deputy Business Editor

SCHWEPPES Zimbabwe Limited has experienced phenomenal business growth a year after the company's operations were localised in a landmark empowerment deal concluded in May last year.

The company recorded 68 percent growth in 2010 and year-to-date volume growth is 33 percent, board chairman Mr Sternford Moyo has said.

"The business has been growing steadily since localisation with strong growth projections for the future. Our 2010 volume growth was 68 percent versus 2009 and 2011 year-to-date volume growth is 33 percent versus 2010," he said.

"We recorded the highest sales volume in 2010 in the history of the organisation. I believe this is a result of an improved economic environment and a focused empowered workforce."

Under the empowerment scheme, Schweppes workers now own 31 percent of the company, management 20 percent and Delta Beverages the balance of 49 percent.

To boost the business, Schweppes is undertaking a US$14,5 million plant capacity upgrade that will see the manufacturer of non-carbonated drinks expand its beverage offerings.

The company will now be able to produce new juice containing products under the Minute Maid brand that is ranked the fifth largest of the Coca-Cola Company's global beverage portfolio in terms of volume.

Mr Moyo said the transformation into a juice business would support the citrus production in Zimbabwe to facilitate 100 percent local procurement targets and thereby enhancing economic development.

He said the broad-based economic empowerment programme, as a whole, was anchored on the fight against poverty and to uplift communities countrywide.

Mr Moyo said there was increasing realisation that investors should balance their needs with those of the communities in which they operate.

"While it is desirable that investors have to maintain confidence in the country, they must also balance the needs of the locals," he said.

Speaking at the launch of the Schweppes Employee Empowerment Scheme, President Mugabe said human rights should not be viewed as a one-sided affair but both parties should work together to achieve a desirable scenario. He said it was a futile exercise if the investors kept on hammering on the issue of human rights when they chose to ignore the historical background surrounding the ownership of the companies and mines which the country seeks to address.

Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said the Employee Share Ownership Scheme had brought a new status to workers in Zimbabwe.

"It moves the worker away from a distant, subservient and suspicious disposition, lending him or her a new status through proud ownership and participation in the affairs of the business. Ownership comes with responsibility," he said.

"Perhaps, even talk of reckless industrial action will become a thing of the past as all participating shareholders will share the burden of running the business."

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), RETAIL, SAVIOUR KASUKUWERE

posted by MrK @ 6:29 PM