In a market where every product is trying to find a way to grab the consumer’s attention, nothing can give you an advantage like a well-known and trusted brand name. Schweppes is one of those names. “I think all our brands have actually a double endorsement in that they are owned by The Coca-Cola Company and carry the Schweppes name on the label, so we have the endorsement of two very strong brands,” says Charles Msipa, Managing Director of Schweppes Zimbabwe Limited. “In an environment where consumers are looking for quality that they can trust for themselves and their families, Coca-Cola is a very strong brand. Not only that but the support of brands by The Coca-Cola Company means we often collaborate on marketing investment programmes that increase the equity of the brands we distribute. So it’s a source of competitive advantage.”

Schweppes Zimbabwe Limited is a manufacturer and distributor of cordials, syrups, bottled water, juices and nectars which are distributed under the Mazoe Orange Crush, Mazoe Syrups, Schweppes Water, Mazoe Ready to Drink, Ripe n’ Ready and Minute Maid Juices brand names.

It was originally established in 1956 as a wholly owned subsidiary of Cadbury Schweppes International. In October 2001 Schweppes Zimbabwe Limited was acquired by The Coca Cola Company as part of its global acquisition of Cadbury Schweppes International’s beverage brands. However, Schweppes Zimbabwe wouldn’t remain a subsidiary for long, and recently the company was divested to stand on its own two feet.

SCHWEPPES ZIMBABWE INDEPENDENT
Msipa explains: “Effective June 2010, the Schweppes Zimbabwe Limited business was localised with the shareholding now being held by management and employees, who took 51 percent of the business, and Delta Beverages, who took 49 percent. The Coca-Cola Company continues to own the brands and trademarks. Schweppes Zimbabwe manufactures and distributes the brands under a franchise agreement with The Coca-Cola Company.”

That Schweppes would eventually be divested by Coca-Cola was inevitable, as it was never a part of the plan for Schweppes to be part of The Coca-Cola Company. “The primary motivation for the buyout was that Coca-Cola’s global business model is based on the fact that it owns the brands and trademarks and it supplies concentrates and franchises production and distribution to independently owned bottling plants around the world,” Msipa says. “It was not by design that Coca-Cola came to own Schweppes Zimbabwe. They were acquiring Schweppes Cadbury’s brands internationally, but the portfolio they acquired from them included Schweppes Zimbabwe and its manufacturing facilities. They own the brand, they invest in the marketing of the brand, and in most countries, will franchise out the bottling operation that handles the production of those brands. This was really The Coca-Cola brand going back to its core business.”

However, having decided to allow Schweppes Zimbabwe to stand on its own two feet, Coca-Cola wanted to make sure that they left the company in safe hands. Naturally, the company turned to the people who had made Schweppes Zimbabwe what it is today.

“Coca-Cola felt strongly that it wanted the ownership of the local manufacturing business to be in the hands of people who had demonstrated a commitment to the business over the last 10 years or so and that’s why it decided to work with management and create a deal for the bulk of the employees, and through Delta, who are also in the beverage business. That’s what we felt would be the best way to assure the future growth of the business, putting it with people who kept the business going, sometimes through very difficult times.”

The same management team is still in place, and Msipa doesn’t expect any major changes in the running of business.

A STAFF OF SAFE HANDS
But how has Schweppes Zimbabwe ensured that its staff are the safe hands Coca-Cola has trusted them to be? The answer is that the company has a policy of investing heavily in those staff. “We provide financial support to enable all permanent employees to pursue educational programmes offered by external institutions that will enhance their skills and performance,” Msipa says. “We also provide supervisory management and executive development programmes for selected employees. On an annual basis, we develop and implement a needs based training and development curriculum targeted at specific employees to meet a variety of business requirements.”

The staff are expected to constantly adhere to internationally set standards, in keeping with a representative of the Coca-Cola and Schweppes brands. This is one area where the Coca-Cola company is able to provide a great deal of support.

“On a general level being part of the Coca-Cola system means we have regular forums which are organised by Coca-Cola to exchange and share and learn about best practices globally,” Msipa says. “By having access to best practice sharing and key performance indicators we are able to benchmark our performance against the best in class in the global Coca Cola System.” This is combined with a thorough process of audits and accreditation.

“On an annual basis we submit to a variety independent external audits that apply international standards to our functions and processes, including ISO 9001 of 2008, and HACCP. In many cases such audits are conducted by externally based accreditation agencies including the South African Bureau of Standards.”

All in all, the future is looking bright for Schweppes Zimbabwe. “As we look to the future there is a sense of measured optimism for the next four or five years.

“Over the last few years we’ve seen an improvement in economic performance in Africa, with that comes a gross increase in middle classes with higher buying capacities and more sophisticated tastes in terms of the products they use.

“Our company is in the juice business primarily and we are seeing these trends in this country, we’re seeing increasing demand for juice containing products.”