South African soft drinks company wants to enter Mozambican market

30 June 2006

Maputo, Mozambique, 30 June – South African soft drinks company, Champs Africa, which produces the Champs brand of drinks, wants to capture the African soft drinks market by expanding its operations to neighboring countries, Botswana and Mozambique.

Champs Africa, which will compete with multinational soft drinks brands that are present in the over 50 countries on the African continent, wants to export to 40 of those markets over the next ten years, taking advantage of the fact that these types of drink are currently posting the biggest growth levels, particularly in South Africa.

Champs Africa produces 1.6 million liters of soda per month and may increase its production to 12 million liters per month when its new Durban and Johannesburg factories begin production alongside its existing Cape Town unit.

The Company, which was founded in 2002, produces 16 different flavors of drink and is currently expanding from Western Cape province to the whole of South Africa and neighboring countries of Botswana and Mozambique.

In Mozambique, the soft drinks market is dominated by US giant Coca-Cola, which had bottling plants in the cities of Maputo (south), Chimoio (center) and Nampula (north).

The South Africa Bottling Company (SABco), which is part-owned by Coca-Cola, has represented the brand in Mozambique since 1993, with an initial investment of US$11 million, the company’s first outside South Africa and one of teh first in teh country after 16 years of civil war.

A 2005 study by KPMG on the 100 largest companies in Mozambique placed SABco in eighth place. (macauhub)