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EthiopiaTeanastellen! Welcome to Ethiopia.

The rich and fertile highlands of Ethiopia – laden with historical treasures like the ancient tombs and obelisks of the Kingdom of Aksum (first to sixth centuries AD) to 17th century castles – bear testimony to the country’s fascinating past. The oldest independent country in Africa, its history dates back to around 3000BC, when Egyptian traders compiled the first records of Ethiopia. Apart from a five-year occupation by Mussolini’s Italy, it has never been colonised.

Coca-Cola was first bottled in Ethiopia’s capital Addis Ababa in 1959 by the Ethiopian Bottling Share Company, which later opened a second branch in Dire Dawa in 1965.

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The two plants were nationalized in 1975 and ran as public companies until 1996 when they were bought by Ethiopian entrepreneurs. Just prior to this, in 1995, Coca-Cola Sabco bought shares in the business and, in 1999, signed a joint venture agreement with the plants. With its leadership working hand in hand, the business has seen significant growth over the years. Processes and functions have been improved, resulting in considerable sales increases.

In 2001, Coca-Cola Sabco increased its shares to 61% and the company changed its name to the East African Bottling Share Company (EABSC). The EABSC continues to run the two plants and has 700 employees.

The EABSC’s achievements include the following:

In 2001, its two plants achieved The Coca-Cola Quality System (TCCQS) Phase One certification.

In 2002, it celebrated the US$6,4-million upgrade project ofits Addis Ababa plant.

2003 saw the inauguration of the brand new ‘Philipp H Gutsche Training Centre’ at the Addis Ababa plant.

In 2004, for the first time in its history, the EABSC registered a volume score of ‘Ten Million Plus’.

Ethiopians enjoy a range of beverages from EABSC, including thosefrom the Schweppes group, Sprite, Fanta, Coca-Cola and Coke Light.

678 employees2 bottling plantsCountry InformationPopulation: 80 millionCapital: Addis AbabaBusiness Language: Amharic, EnglishCurrency: BirrGDP per capita: $120Plant Information

Plant Locations: Addis Ababa, Dire DawaEmployees: 678Job creation multiplier: ± 8000Number of MDC's: 537LeadershipCountry Manager: : Greig JansenFinance Manager: Godfrey IrisoCustomer Services Manager: Emanuel De CastroSales and Marketing Manager: Nalaka HettiarachchiCountry Manufacturing Manager: Mattheus (Tewie) RoosHuman Resources Manager: Anteneh Tegegn

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Coca Cola unveils PET bottles in EthiopiaSeptember 9, 2013 - Beverage, Latest News - Tagged: Addis Ababa, Coca-Cola, East Africa Bottling, Ethiopia, Plastic Bottles, PolyEthylene Terephthalate

Addis Ababa, Ethiopia – East Africa Bottling S.C. (EABSC) unveiled its recyclable plastic PET (PolyEthylene Terephthalate) bottles at a launching ceremony for its USD 50 million hi-tech manufacturing facility, on Tuesday September 2.

The new facility will enable it to meet the ever increasing demand for Coca Cola beverages in Ethiopia. The company has otherproducts including water and other flavors in the pipeline as well. The plastic bottles will be available in two sizes-500 ml and 1.5 litres. The labels on the bottles will include Amharic words.

The 500 ml plastic bottle of Coca Cola is called Shir-Shir [an Amharic term for picnic] as it is comfortable and convenient to have it anywhere and at anytime, according to Misikir Mulugeta, CocaCola’s Brand Manager.

The 1.5 litre bottle, which Misikir said is designed for familiesor large groups, is called Cheber Chacha, an Amharic word related to festivities. “There’s a whole new way of enjoying and celebrating Coca Cola in Ethiopia. The big thing about plastic bottles is convenience,” said Aghay Parnerkar, Country Manager for Coca Cola.

“It is all about being able to enjoy Coca Cola wherever you are and not having to worry about when you are going to return those bottles,” he said.

Glass bottles will continue at least 75 percent of Coca Cola’s business beyond 2020 due to its affordability, not to mention itsgreat look, according to Grieg Jansen, CEO of East Africa Bottling S.C.

Coca Cola offers its products in plastic bottles in other Africancountries, according to Jansen. He admitted that Coca Cola was a bit late in introducing plastic bottles in Ethiopia.   Read more

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Coca Cola to build third plant in EthiopiaSeptember 23, 2013 - Latest News, Soft Drinks - Tagged: Coca-Cola, Dire Dawa, Ethiopia, Greig Jansen

-Invests USD 70 million on existing plants

It is close to half a century ago that Coca Cola’s set up shop ineastern Ethiopia. Today, after 50 years of operations, the Dire Dawa plant is still functional.

Including the one in the capital, both plants currently belong toEast Africa Bottling Share Company – the sole bottler Coca Cola and other soft drinks in Ethiopia.

This Tuesday the Dire Dawa plant commenced a larger production after a USD 20 million upgrading project was completed. The company also plans to build its third plant.

The inauguration ceremony was held in the absence of city officials, though they were busy conducting cabinet meetings.

Greig Jansen, CEO of the company told journalists that following the USD 20 million investment in the Dire Dawa plant, its production line has increased five-fold. The CEO noted that the previous production line had the capacity to produce five thousand crates per day. In addition to the USD 20 million that went into the  expansion project, USD 12 million is also slotted to set up a plastic bottle production line to be built in the near future. A further USD one million has allocated for a treatment plant.

East Africa Bottling Share Company has recently announced plans to invest USD 500 million in Ethiopia. Jansen further noted that,up until now, USD 150 million has already been injected into the expansion project, out of which USD 50 million was spent on the plastic bottling line of the Addis Ababa plant. Jansen said the plastic-bottled Coca Cola products are primarily intended for export.

On top of the two older plants, Coca Cola is also set to kick-start the construction of a third plant to be located in Bahir Dar, the capital city of the Amhara Regional State. The company has secured 20 hectares of land on which it is scheduled to startconstruction in three months. A total of USD 35 million is to be invested in plastic and glass bottling lines of the Bahir Dar plant. Both are expected to be operational in 12 months. The Bahir Dar plant, once operational, will be the biggest with a production capacity of 100 thousand crates of plastic and glass bottles per day.

East Africa Bottling Share Company is owned by Coca-Cola Sabco and four other minority Ethiopian shareholders. Cumulatively, theminority shareholders retain an 18 percent share, whereas Coca-Cola Sabco controls the rest. At present, the company employees 1,500 workers.

Source: TheReporterEthiopia.com

Business Franchising Under Ethiopian Law

  

  

 

A recent International Monetary Fund report identified Ethiopia as one

of the fastest growing non-oil based economies in Africa, growing by

double digits over the past six consecutively years.  While Ethiopia’s

economy is mostly agrarian, the recent expansion of the country’s

middle class and urban population and its per capita income has made

the country ripe for international franchising businesses, especially

those involved in the consumer retail business.  Yet, with the

exception of few major international franchisors, few have shown

interest in Ethiopia’s up and coming franchise market.  The lack of

interest from international franchisors in Ethiopia has led to the

copying and misappropriation of well known and established brands in

the local market.  It is inevitable that at some point that some of

the major international franchisors will enter the Ethiopian market as

the franchise market further matures.  Invariable, however, the

current lack of interest or active protection of goodwill and

intellectual property by the part of international franchisors will

complicate any future entry.  Hence, it is important for international

franchisors to understand the current legal and regulatory environment

in Ethiopia for operating an international franchise.   

International franchising and franchising contracts are not new to

Ethiopia.  In fact, Ethiopia’s current major franchise agreements were

first drawn up nearly 50 years ago.  Among the first franchisors in

Ethiopia were Coca-Cola, Pepsico, Inc. and Hilton International Hotels

Co., to mention a few.  The newest of the major international

franchisors in Ethiopia is the Sheraton Hotels.  Sadly, very little

franchising activity took place between the 1960s, when the Hilton and

Coca-Cola entered the market, and the 1990s, when the Sheraton Addis

opened for business. The reasons for the stagnation of the franchising

market during this period are many but the most important cause was

the 1974 military coup and the subsequent adoption of Soviet style

communist economic policies that overnight wiped out the private

sectors in Ethiopia.  Interestingly, the laws governing businesses and

to some degree, franchise agreements too, changed very little during

this period and basic business activity in Ethiopia continued to large

degree to be governed by the 1960 Commercial Code (the “Code”). 

Consequently, any review of current Ethiopia law governing franchising

activity will have to include aspects of both the Code and new

additions and modifications introduced since 1991.

1.      REGULATORY REQUIRMENTS

Ethiopia currently does not have per se a body of law specifically

governing business franchising. In fact, a search for the term

“franchise” or “franchise law” in the Code bares no result at all. 

Surprisingly, a review of subsequently published legal commentaries on

the Code and contract law also contains no reference to franchise law.

There is no specific law; there is no government or private body

concerned with this matter.  However, it does not mean that there are

no relevant laws that may be applicable to business franchises in

Ethiopia or there were no past attempts to formulate a regulatory

structure for franchises by the government.  There are, indeed,

patchworks of disparate laws that collectively affect the activities

of franchisors in Ethiopia.

A.     Government Registration, Approval or Filing Requirements

Franchising agreements are not required to be registered or require

approval from any governmental or regulatory body per se under current

Ethiopia laws.  However, certain aspects of a franchise agreement may

be required to be registered at the Ethiopia Investment Commission

under the transfer of technology regulations.  What counts as a

transfer of technology agreement within the context of a franchise

agreement is tricky and requires a close review of each franchising

agreement by local counsel who is familiar with the regulatory

structures of Ethiopian commercial and investment laws. 

Up until the amendment of the Investment (Amendment) Proclamation No.

375/2003 (and repeal of certain provisions of the TOT Regulation) in

2003, it was possible to reasonably map out the regulatory process for

franchise agreements in Ethiopia.  In 1993, two years after the down

fall of the communist government, the new market oriented government

issued The Transfer of Technology Council of Ministers Regulation No.

121/1993 (the “TOT Regulation”).  The TOT Regulation defined transfer

of technology as “the transfer of systematic knowledge for the manufacturing of a

product, for the application of rendition a service, including management and marketing

technologies, but shall not extend to transaction involving the mere sale or lease of goods.”

While the legislative intent of this article was not clear, one can

reasonably deduce that the TOT Regulation in general, and the latter

article, specifically, required certain aspects or types of franchise

agreements.  Indeed, this assumption becomes even more palpable when

considering a subsequent draft directive that was intended to be

issued under this proclamation but for some odd reason was never

executed.  See The Approval and Registration of Transfer of Technology

Agreement Directives No. 1.

Nearly ten years after the introduction of the TOT Regulation, the

Ethiopian Investment Authority drafted The Approval and Registration

of Transfer of Technology Agreement Directives No. 1 (the “TOT

Directives”) pursuant to its authority to issue such directives under

Article 3(2) of the TOT Regulation.  The TOT Directives were intended

to interpret and implement the TOT Regulation. As such, as a further

refinement of the technology transfer regulation, the TOT Directive

distinctly included certain provisions relating to the regulation of

franchise agreements.  In fact, this is the only place within the

context of Ethiopian legal system that franchising agreements are

mentioned and considered. Article 3(3) of the TOT Directives defined a

franchise agreement as “a business arrangement in which knowledge, expertise and

often a trade mark or trade name are licensed to an operator or recipient.”  With regards

to the application for registration of a technology transfer agreement

associated with a franchise agreement, Article 5(4) of TOT Directives

states as follows: “Where an agreement involves a franchise agreement the franchiser

(supplier) must have developed a special business format through which the goods or services

are sold under the trademark or name and the good will attached to it.”  As for the

duration of the franchise agreement, “the duration of the agreement

shall consider the financial situation of the franchisee or

recipient.” See Article 7(2) of the TOT Directives. Finally, if the

application was found acceptable, the application would be registered

and a certificate would be issued after the payment of a filing fee.

See Article 5(5) of TOT Directives.  While there were other provisions

that may also be relevant to franchise law, further discussions of the

TOT Directives is irrelevant since the directive was never issued. 

What is relevant is what remains of the TOT Regulation and subsequent

proclamations modifying or repealing of certain provisions of the TOT

Regulation.    

A further development in the evolution of technology

transfer/franchise agreement registration took place in 2002 when the

Ethiopian Parliament adopted Investment Proclamation 280/2002 (the

“2002 Investment Proclamation”).  Referring to the TOT Regulation, the

2002 Investment Proclamation reaffirmed the Investment Authority’s

jurisdiction in the registration and regulation of technology transfer

agreements. See Article 18 (1) and (2) [Transfer of Technology] of the

Investment Proclamation.  Specifically, Article 18(2) mandated that

evaluation of applications for the registration of a technology

transfer agreement to be made based on the criteria set under the TOT

Regulation. In a further twist, the 2002 Investment Proclamation was

further amended in 2003. See Investment (Amendment) Proclamation

373/2003.  Specifically, Article 18 was “deleted and replaced” by

Article 9(1), (2) and (3), which specifically enumerated a new process

by which technology agreements are supposed to be registered and

regulated.  Essentially, the 2003 amendment to the Investment

Proclamation repealed the TOT Regulation and replaced and mandated

that all technology transfer agreements to be submitted to the

Investment Authority (now Commission) for “approval and registration”

and required the Commission to issue a certificate in two days. See

Articles 9(1), (2) and (3) of Investment (Amendment) Proclamation

373/2003.  Moreover, the 2003 Investment Proclamation refined the

definition of “transfer of technology” to mean “the transfer of systemic

knowledge for the manufacture of a product, for the application of improvement of a

process or for the rendering of a service, including management and marketing

technologies, but shall not extend to transactions involving the mere sale or lease of goods.”

See Article 14 of Investment (Amendment) Proclamation 373/2003.  What

is missing from both the 2002 and 2003 Investment Proclamations was

any specific reference to a franchise agreement as was done in the TOT

Directives.

What makes the 2002/2003 Investment Proclamations relevant to

franchising is that both proclamations deal with the structured

transferring of systematic knowledge from one entity to another in

view of improving the manufacturing of products or rendition of

services by way of improved technological knowhow and marketing

technologies.  See Article 14 of Investment (Amendment) Proclamation

373/2003.  This does not mean, however, that transfer of knowledge

presupposes transfer of business models as it is in the case of

franchising. The technology exporter (under a licensing agreement or a

supply agreement) may simply introduce certain patented machinery for

the manufacture of canned meat, for example, but does not transfer the

trademark or other designations that represent the goodwill of the

technology exporter. In this case, there is no business modeling and

the analogy does not work. But if a franchise agreement includes, for

example, the marketing technology, management, and proprietary

business process, and/or specified machines that could be used for the

production of goods or for rendering of a service, this franchise

agreement may satisfy the transfer of technology agreement

registration requirements and these aspects may be required to be

registered with the Commission.

Depending on the circumstances of each franchising scenario, elements

of a franchise agreement may be registered by different relevant

government authorities.  Although not a mandatory requirement, the

registration of a business trademark, patent and other relevant

intellectual property would be an important aspect of establishing a

workable franchise mechanism. The Trademark Registration and

Protection Proclamation, Proclamation No. 501/2006 (Trademark

Proclamation), the Inventions, Minor Inventions and Industrial Design

Proclamation, and Proclamation No. 12/1997 are specifically relevant

for the registration and protection of a franchisor’s intellectual

property, even if the franchisee licenses the use of trademark or

patented technology of the franchisor for the operation of the

franchise business.

Another potential registration requirement, especially for an

international franchising agreement, is the registration of the

agreement with the National Bank of Ethiopia.  The National Bank of

Ethiopia is the designated regulatory body for Ethiopia’s financial

sector and regulates international financial transactions, especially

those denominated with foreign currency.  As in most cases, if the

franchise royalty payments are made in US dollars or other foreign

dollars, the National Bank would be interested and registration of

said agreement with the bank will be required.

In sum, one can say that the requirements identified under the TOT

Regulation/Directives to some degree, and the two Investment

Proclamations, to large degree, have set an ambiguous but unavoidable

course for the registration and regulation of aspects of franchise

agreements under certain circumstances. The circumstances that may

necessitate filling, approval and registration may include the

nationality of the parties involved, the franchisor in particular, the

content of the franchise agreement, whether the business contains

intellectual property such as trademark/trade name, layout design,

patented, know-how or a particular type of trade secrets. 

Registration of the agreement may be necessary if foreign currency is

involved in the transaction. In the end, however, each franchising

agreement must be reviewed and analyzed based on each agreement’s

content and merit.  Some will be required to be registered and others

will not.  The best way to find out is by reviewing and analyzing each

agreement, preferably done by a professional with experience in this

area.

* This blog is an excerpt of a book chapter of an upcoming book on African Business Franchise Law.

Contact me:

Yohannes Assefa, Esq.

Pioneer International Legal Consulting

US Office: 6394 Andrew Mathew Trc

Springfield, Virginia 22150

Phone: 202-527-0980

Ethiopia Office: P.O. Box 4832

Addis Ababa, Ethiopia

Phone: +251-912-600379

E-Mail: abadefar1@gmail.com

Company Profile: - WAAS International P.L.C Establishment WAAS International Private Limited Company was first established in 1990 as WAAS Associates but was restructured in 1994 and renamed as WAAS International Plc. Owned and run by Ethiopians, WAAS is one of the long established consultancy firms in the country. WAAS Staff and Associate Consultants Our firm is managed and ran by well qualified and experienced directors and staff. WAAS has 27 permanent employees over 11 cities Ethiopia. WAAS also maintains over 60 freelance consultants as associates with multidisciplinary qualifications and professions. The associates are available to join WAAS on assignments up on short notices. At the international level, WAAS has affiliationswith a number of distinguished consulting firms in the UK, the Netherlands, Canada, Kenya, Zambia, Belgium, France, Germany, US and Cyprus. WAAS is also the only member in Ethiopia in Pan Africa media research organization association and ESOMER. Facilities Our office islocated in a very convenient place in the town where star hotels, public transport, banks and other services are adequately available. WAAS maintains an adequate office space to manage large projects. Our Market and Social Research Department is well equipped and has adequate qualified staff. It has a proven track record in handling large and complex qualitative and quantitative studies, small and large scale market and social researches. The Department is responsible for all surveys undertaken by our firm include designing data collection instruments, recruiting and training data collection personnel, sampling, data collection, data entry processing and analysis using software packages preferred by our clients. Scope of Our Services WAAS activities generally focus on the following areas ofservices: Market Research – (both quantitative and qualitative) Social Research (both quantitative and qualitative) Media research Midterm and terminal evaluations of project implementations Industrial and Agro-industrial feasibility studies Organizational structures, human resources management and pay schemes studies,

Tourism and tourism related studies, Environmental and Social Impact Assessments studies; Organizing and delivering Human Resources and Financial management training programs; and Organizing Workshops

Clientele • Bilateral and Multilateral Organizations • Private sector industries • Local Government Offices • Local and International NGOs • Small and large scale business owners • Investors, owners and financiers

Major Consultancy Services Undertaken recently Assignment Name: PVC 10 Vaccine monitoring and Evaluation Wave I, II and III Location within Country: Addis Ababa Name of Client: GSK/WHO though Synovate Kenya Address: Addis Ababa, Ethiopia Start Date: (Wave I) (Wave II) August 2010 (Wave III) March 2012

Completion Date September 2011 April 2012

Name of Associated Consultant. Synovate Kenya Name of senior staff involved from WAAS and his functions – Efera Busa - Project Coordinator Description of Actual Services Provided – Programatic Monitoring Study ofPCV10 Vaccine Introduction in Ethiopia (in three separate waves) – monitoring in terms of communication, documentation and infrastructure, and evaluating the effectiveness of the training and the proper handling and administration of the vaccine. The study involved 240 Health facilities, over 720 interview with mother and 240 health care workers all over Ethiopia.

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Key Takeaway

Be open to outsourcing product distribution. Find motivated entrepreneurs who are interested in distributing your products and provide them with training and sales materials. Pilot new models -- even if they fail, they will provide you with valuable insights for the future.

Coca-Cola is the world’s leading owner and marketer of nonalcoholic beverage brands. With sales of 24.4 billion cases inover 200 countries worldwide in the last year alone, Coca-Cola isubiquitous in both developed and developing countries. However, maintaining a strong brand name and launching innovative marketing campaigns is only part of their massive success.

Coca-Cola tailors their marketing efforts based on the country’s maturity. From the 2009 annual report, the company notes that:

We have disciplined marketing strategies that focus on driving volume in emerging markets, increasing our brand value in developing markets and growing profit in our most developed markets. In emerging markets, we are investing in infrastructure programs that drive volume through increased access to consumers.In developing markets, where consumer access has largely been established, our focus is on differentiating our brands. In most developed markets, we continue to invest in brands and infrastructure programs, but at a slower rate than revenue growth.

In developed countries, Coca-Cola primarily uses traditional distribution models where large amounts of product are delivered via trucks or other motorized vehicles to large retail outlets.  In developing countries, road infrastructure, terrain, retail market, cost implications and customer needs are vastly differentand require a more tailored approach.

This case study focuses on identifying the mechanisms that allow Coca-Cola to make their product available to consumers in even the most remote areas of the world.  Read more below and also watch the following TEDx video, where Melinda Gates of the Bill and Melinda Gates Foundation points to Coca-Cola’s Micro Distribution Center (MDC) as a model for the international healthand development community.  Melinda emphasizes Coca-Cola’s strength in leveraging real-time data, thus allowing for project adjustments and corrections along the way; tapping into the powerof local entrepreneurial talent, who are closer to the ground andcan do the seemingly impossible; and marketing their products as aspirational.

Micro Distribution Center (MDC)

In Africa, Coca-Cola uses full range of distribution methods depending on the sub-market requirements. In developed, urban areas, Coca-Cola and their bottling partners use the traditional model for supplying large retailers through delivery trucks.  Retailers here include grocery stores, hotels, universities, and other large institutions. In the remaining urban and peri-urban areas, where the large proportion of retail outlets are small neighborhood restaurants or bars, corner stores, one-person kiosks, Coca-Cola has adopted a manual delivery approach working with small-scale distributors to deliver products to small-scale retailers. This approach is called the Micro Distribution Center (MDC) model.

Photo Credit: Tielman Nieuwoudt

MDCs are independently owned, low-cost businesses created to service emerging urban retail markets where classic distribution models are not effective or efficient.  The MDC model identifies and engages independent entrepreneurs, who receive business training and in some situations financing, to become an MDC owner.  The majority of MDC owners are not from the poorest segment of the population, but instead have a minimum of primary

school education and have previously been employed or were in school before becoming an owner. These owners have been identified to have the potential to grow a business, employ others, raise productivity, and increase incomes on a sustained basis.

From the IFC / Harvard Kennedy School Developing Inclusive Business Models report, common characteristics of the MDC include:

Central point of warehousing of product, with a manageable coverage area and defined customer base (typically about 150 retail outlets)

Distribution of product is mostly manual (e.g. bicycle, pushcart)to keep costs to a minimum

Outlets served are typically low-volume with high service frequency requirements and limited cash flow, requiring fast turnaround of stock.

Today, there are more than 2,800 MDC businesses, generating more than $550 million in revenues in high density urban areas throughout East Africa, including Ethiopia, Kenya, Mozambique, Tanzania, and Uganda.  In Ethiopia alone, MDCs account for 80% ofthe country’s sales.

MDC owners earn a set profit margin for each case sold, equivalent to the difference between the cost to the MDC for purchasing a case of beverages and the retail price to customers.This pre-determined profit margin, in the range of 3 to 5%, helpsmaintain a consistent retail price across all MDCs and incentivizes high quantity, volume-driven sales to derive satisfactory income.  In addition to the profit margin, some Coca-Cola subsidiaries offer monthly bonuses based on the abilityto meet sales targets.

MDC owners also receive management training in areas of basic business skills, warehouse and distribution management, account development, merchandising and customer service.

In short, the Micro Distribution Center is a win-win solution forboth Coca-Cola and MDC owners, and is a critical element to the company’s ability to distribute product in emerging markets. Muhtar Kent, Chairman and CEO of the Coca-Cola Company summarizedit as:

For Coca-Cola, the MDCs are a wonderful example of the way business can focus on meeting its consumers’ and customers’ needswhile supporting the sustainability of communities… It has long been our philosophy to look at our business system holistically and determine where we can have the greatest impact on advancing initiatives that are critical to the communities and stakeholdersthat we rely on.

East African Bottling Sees Ethiopia as Number One Market

The share company plans to invest 8.8 billion Br in eight years to expand operations

   

East African Bottling Share Company (EABSC) is on an eight-year investment spree of nearly nine billion Birr, intended to make Ethiopia its number one market in Africa bythe year 2020.

The decision came after a study commissioned by the South African Beverage Company (SABCO) Coca-Cola, which holds an 82pc share in the Ethiopian company. The study was undertaken by two international banks, which were paid millions of dollars. Greig Jansen, managing director of the Ethiopian company, declined to identify the banks or state the sum paid to them for the study.

Ethiopia is among the top 10 fastest growing marketplaces in Africa for Coca-Cola, currently holding the fourth rank in market share, following South Africa, Kenya, and Uganda, according to Jansen.

EABSC found confidence in its investment decision of 500 million dollars, about 8.8 billion Br, in the findings of the study, the vastly improving infrastructure, the huge and growing population, and the growth of the country’s GDP per capita, accordingto Jansen.

“If you are serious about investing, you cannot afford not to invest in Ethiopia,” he said.

The decision is embodied in the company’s Plan 2020, which has been under implementation since the beginning of 2012. The plan incorporates new buildings, new plants, expansion of existing plants, diversification of products, and the expansion of distribution channels.

Already underway is the construction of a five-storey production building in the company compound at Abnet area in Lideta District, on Balcha Aba Nefso Street. The construction, contracted to Elmi Olindo & Co, will be exclusively used for production-related purposes, including storage of stock and raw materials.

It will be the only such facility in Africa for Coca-Cola SABCO, according to Jansen. This building as well as a two-storey regular training building and a technical training centre, which are yet to be constructed, will cost close to 18.6 million

dollars or 330 million Br.

Elmi Olindo & Co, in business since 1945, has also an established business relationship with EABSC. It executed Coca-Cola factory rehabilitation work from 2001 to 2003 and performed the expansion work for the Dire Dawa Plant, which replaced the old production line of the plant, at a capacity of two million cases a year, by a new modern production line at a capacity of seven million cases.

It started the construction of the building in Addis Abeba on Wednesday, April 11, 2012, committed to deliver it by October 2012.

These buildings are part of a 52 million-dollar or 923 million-Br expansion, intended for the Addis Abeba Plant, including the installation of two additional production lines, bringing the total to five. One of these lines will be dedicated to packaging the company’s beverages in plastic bottles.

The original expansion of the Dire Dawa Plant, which saw production grow to seven million cases, as of February 2012, cost 20 million dollars. The new expansion, expected to cost the same amount of money as part of Plan 2020, will see the installation of one more line in 2012/13.

When the Addis Abeba and Dire Dawa expansions are finalised, the company expects a total annual production of 45 million cases.

The plan includes three new plants in Bahir Dar, Hawassa, and a third plant to be located in western Ethiopia in a city yet to be identified, according to Jansen. Construction of the Bahir Dar plant will begin in August or September 2012, with production expected to begin in June 2013.

The Bahir Dar plant, which will cost about 40 million dollars, will have one production line with a production capacity of 15 million cases a year.

“The construction of the two other new plants in Hawasa and another western city will be based on the performance of the other lines,” Jansen said.

In May 2012, EABSC will officially add Fanta Strawberry to the already existing Coca-Cola, Fanta, Sprite, Fanta Pineapple, Coke Light, and Schweppes Tonic product lines, but new the product is already on the market.

Three of the 40 trucks that EABSC ordered from Automotive Manufacturing Company of Ethiopia (AMCE) and Nyala Motors SC for five million dollars arrived on Monday, April 9, 2012, according to Jansen. The rest will follow, but Jansen did not specify the timeframe. The company also has set up a water treatment plant, with a total investment of five million dollars and a total capacity of 1.5 million litres a second. The plant treats all used water, which the company then releases in to a river, Jansen said.

Coca-Cola started production in Ethiopia in 1959, with the plant in Addis Abeba. The Dire Dawa Plant came in 1965. It was nationalised by the Derg Regime and then

privatised in 1996.

The original shareholders, when it was privatised, were Negussie Hailu, Munir Duri, Bereket Haregot, Kassim Hussien, and a fifth shareholder. Now, 82pc of the company is owned by Coca-Cola SABCO, having acquired all or most of their shares, the remaining 18pc is owned by two of the original shareholders, Negussie and Munir, as well as Dereje Yesuwork, and Abinet G. Meskel, close confidants of the Saudi tycoon Mohammed Ali Al-Amoudi.

The company’s turnover in 2010/11 was 100 million dollars, but Jansen would not say what the profit was. However, satisfied with its performance, the company has granted bonuses to its 1,000 permanent employees amounting to 3.25 to 6.5 times their salaries.

Coca-Cola SABCO operates in six other southern and eastern African countries and five Asian countries, with a total production capacity of half a billion cases as of 2010/11. It also owns a 27-storey production building in Hong Kong.

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Economy of Ethiopia

Commercial Bank of Ethiopia in Addis Ababa

Currency Birr (ETB)

Fiscal year 8 – 7 July

Trade organisations AU, WTO (observer)

Statistics

GDP $103.1 Billion [1]

GDP growth 7% [1]

GDP per capita $1,200 PPP [1]

GDP by sector agriculture (46.6%), industry (14.5%), services (38.9%) (2011)

Inflation (CPI) 12.9% [2]

Populationbelow poverty line

28.7% (2011)

Labour force 37.9 million 2007 Estimate

Labour forceby occupation

Agriculture (85%) Services (10%) Industry (5%) (2009 est.)

Unemployment 24.9% [1]

Main industries food processing, beverages, textiles, leather, chemicals, metals processing, cement

Ease of doing business rank 111th[3]

External

Exports $3.163 billion [1]

Export goods coffee, qat, gold, leather products, live animals, oilseeds

Main export partners

 China 13.0% Germany 10.8%

 United States 7.9% Saudi Arabia 7.8% Belgium 7.7% (2012 est.)[4]

Imports $10.6 billion [1]

Import goodsfood and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles, cereals, textiles

Main import partners

 China 13.1% United States 11.0% Saudi Arabia 8.2% India 5.5% (2012 est.)[5]

Public finances

Public debt 42.3% of GDP

Revenues $4.645 billion (2011)

Expenses $5.25 billion, capital expenditures of $788 million (2005)

Economic aid $308 million (recipient) (2001)

Main data source: CIA World Fact Book

All values, unless otherwise stated, are in US dollars

The economy of Ethiopia is largely based on agriculture, which accounts for 46.6% of the gross domestic product (GDP) and 85% oftotal employment.

Ethiopia is one of the fastest-growing economies in the world andis Africa’s second most populous country.[6] Many properties ownedby the government during the previous regime have now been privatized and are in the process of privatization.[7] However, certain sectors namely Telecommunications, Financial and Insurance services, Air and Land Transportation services, and retail are considered as strategic sectors and would remain under

state control for the foreseeable future. Almost 50% of Ethiopia's population is under the age of 18, and even though education enrollment at primary and tertiary level has increased significantly, job creation has not caught up with the increased output from educational institutes. The country must create hundreds of thousands of jobs every year just to keep up with population growth.[8]

The Ethiopian constitution defines the right to own land as belonging only to "the state and the people", but citizens may only lease land (up to 99 years), and are unable to mortgage, sell, or own it.[9] Various groups and political parties have sought for full privatization of land, while other opposition parties are against privatization and favor communal ownership.[citation needed]

The current government has embarked on a program of economic reform, including privatization of state enterprises and rationalization of government regulation. While the process is still ongoing, the reforms have begun to attract much-needed foreign investment. Despite recent improvements, with an exploding population Ethiopia remains one of the poorest nations in the world.[citation needed]

Contents

1 Sectors o 1.1 Agriculture o 1.2 Forestry o 1.3 Fishing o 1.4 Minerals and mining o 1.5 Energy o 1.6 Manufacturing o 1.7 Transport o 1.8 Telecommunications o 1.9 Tourism

2 Macro-economic trend 3 External trade 4 See also 5 References 6 External links

Sectors

Agriculture

Main article: Agriculture in Ethiopia

The economy of Ethiopia is based on agriculture, which accounts for 46.3% of gross domestic product (GDP), 60% of exports, and 80% of total employment.

Ethiopia's agriculture is plagued by periodic drought, soil degradation caused by overgrazing, deforestation, high populationdensity,[citation needed] high levels of taxation and poor infrastructure (making it difficult and expensive to get goods to market). Yet agriculture is the country's most promising resource. A potentialexists for self-sufficiency in grains and for export development in livestock, grains, vegetables, and fruits. As many as 4.6 million people need food assistance annually.

Agriculture accounts for almost 41 percent of GDP, 80 percent of exports, and 80 percent of the labour force. Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. Exports are almost entirely agricultural commodities, with coffeeas the largest foreign exchange earner, and its flower industry becoming a new source of revenue: for 2005/2006 (the latest year available) Ethiopia's coffee exports represented 0.9% of the world exports, and oilseeds and flowers each representing 0.5%.[10] Ethiopia is Africa's second biggest maize producer.[11] In 2000, Ethiopia's livestock contributed to 19% of total GDP.[12]

As of 2008, some countries that import most of their food, such as Saudi Arabia, had begun planning the development of large tracts of arable land in developing countries such as Ethiopia.[13] This has raised fears of food being exported to more

prosperous countries while the local population faces its own shortage.[13]

Forestry

Main article: Forestry in Ethiopia

Forest products are used in construction and manufacturing, and as energy sources.

Fishing

Main article: Fishing in Ethiopia

Ethiopia's fisheries are entirely freshwater, as it has no marinecoastline, and are a small part of the economy.

Minerals and mining

The mining sector is small in Ethiopia. The country has deposits of coal, opal, gemstones, kaolin, iron ore, soda ash, and tantalum, but only gold is mined in significant quantities. In 2001 gold production amounted to some 3.4 tons.[14] Salt extraction from salt beds in the Afar Depression, as well as fromsalt springs in Dire and Afder districts in the south, is only ofinternal importance and only a negligible amount is exported.

On 30 August 2012 it was announced that British firm Nyota Minerals was about to become the first foreign company to receivea mining licence to extract gold from an estimated resource of 52tonnes in western Ethiopia.[15]

Energy

Main article: Energy in Ethiopia

Waterpower and forests are Ethiopia's main energy sources. The country derives about 90 percent of its electricity needs from hydropower, which means that electricity generation, as with agriculture, is dependent on abundant rainfall. Present installed

capacity is rated at about 2000 megawatts, with planned expansionto 10,000 megawatts. In general, Ethiopians rely on forests for nearly all of their energy and construction needs; the result hasbeen deforestation of much of the highlands during the last threedecades.[14]

Less than one-half of Ethiopia’s towns and cities are connected to the national grid. Petroleum requirements are met via imports of refined products, although some oil is being hauled overland from Sudan. Oil exploration in Ethiopia has been underway for decades, ever since Emperor Haile Selassie granted a 50-year concession to SOCONY-Vacuum in September 1945.[16] Plans are afootto exploit natural gas reserves in the southeastern lowlands, estimated at 4 trillion cubic feet (110×109 m3). Exploration for gas and oil is underway in the Gambela Region bordering Sudan.[14]

Manufacturing

Main article: Manufacturing in Ethiopia

This sector constitutes about 4 percent of the overall economy, although it has shown some growth and diversification in recent years. Much of it is concentrated in Addis Ababa. Food and beverages constitute some 40 percent of the sector, but textiles and leather are also important, the latter especially for the export market. A program to privatize state-owned enterprises hasbeen underway since the late 1990s.[14]

Transport

Main article: Transport in Ethiopia

Prior to the outbreak of the 1998–2000 Eritrean–Ethiopian War, landlocked Ethiopia mainly relied on the seaports of Asseb and Massawa in Eritrea for international trade. As of 2005, Ethiopia uses the ports of Djibouti, connected to Addis Ababa by the AddisAbaba – Djibouti Railway, and to a lesser extent Port Sudan in Sudan. In May 2005, the Ethiopian government began negotiations to use the port of Berbera in Somaliland. Of the 23,812 kilometres of Ethiopia's all-weather roads, 15% are asphalt.

Mountainous terrain and the lack of good roads and sufficient vehicles make land transportation difficult. However, the government-owned airline, Ethiopian Airlines, is one of Africa's best airlines. It serves 41 domestic airfields and has 65 international destinations.

Telecommunications

Main article: Telecommunications in Ethiopia

Telecommunications are provided by a state-owned monopoly, Ethio Telecom, formerly the Ethiopian Telecommunications Corporation.

Tourism

Main article: Tourism in Ethiopia

Aside from wholesale and retail trade, transportation, and communications, the services sector consists almost entirely of tourism. Developed in the 1960s, tourism declined greatly during the later 1970s and the 1980s under the military government. Recovery began in the 1990s, but growth has been constrained by the lack of suitable hotels and other infrastructure, despite a boom in construction of small and medium-sized hotels and restaurants, and by the impact of drought, the 1998–2000 war withEritrea, and the specter of terrorism. In 2002 more than 156,000 tourists entered the country, many of them Ethiopians visiting from abroad, spending more than US$77 million.[14] In 2008, the number of tourists entering the country had increased to 330,000.[17]

Macro-economic trend

Map of economic activities in Ethiopia and Eritrea (1976)

The following table displays the trend of Ethiopia's gross domestic product at market prices, according to estimates by the International Monetary Fund with figures in millions of EthiopianBirr.[18]

Year

Gross DomesticProduct

GDP(USD)

USDollar

Birr (millions) percapita

Exchange

1980 14,665 190 2.06

Birr

1985 19,476 220 2.06

Birr

1990 25,011 257 2.06

Birr

1995 47,560 148 5.88

Birr

2000 64,398 124 8.15

Birr

2005 106,473 169 8.65

Birr

2006 131,672 202 8.39

Birr

2007 171,834 253 8.93

Birr

2008 245,973 333 9.67

Birr

2009 353,455 (est) 418

(est)12.39 Birr

2010 403,100 (est) 398

(est)13.33 Birr

The current GDP (USD) per capita of Ethiopia shrank by 43% in the1990s.[19]

External trade

Ethiopian exports in 2006

Graphical depiction of Ethiopia's product exports in 28 color-coded categories.

The major agricultural export crop is coffee, providing about 26.4% of Ethiopia's foreign exchange earnings. Coffee is criticalto the Ethiopian economy. More than 15 million people (25% of thepopulation) derive their livelihood from the coffee sector.[20]

Other exports include live animals, leather and leather products,chemicals, gold, pulses, oilseeds, flowers, fruits and vegetablesand khat (or qat), a leafy shrub which has psychotropic qualitieswhen chewed.

Cross-border trade by pastoralists is often informal and beyond state control and regulation. In East Africa, over 95% of cross-border trade is through unofficial channels and the unofficial trade of live cattle, camels, sheep and goats from Ethiopia sold to Somalia, Kenya and Djibouti generates an estimated total valueof between US$250 and US$300 million annually (100 times more than the official figure).[21] This trade helps lower food prices,increase food security, relieve border tensions and promote regional integration.[21] However, there are also risks as the unregulated and undocumented nature of this trade runs risks, such as allowing disease to spread more easily across national borders. Furthermore, the government of Ethiopia is purportedly unhappy with lost tax revenue and foreign exchange revenues.[21] Recent initiatives have sought to document and regulate this trade.[21]

Dependent on a few vulnerable crops for its foreign exchange earnings and reliant on imported oil, Ethiopia lacks sufficient foreign exchange. The financially conservative government has taken measures to solve this problem, including stringent import controls and sharply reduced subsidies on retail gasoline prices.Nevertheless, the largely subsistence economy is incapable of supporting high military expenditures, drought relief, an ambitious development plan, and indispensable imports such as oiland, therefore, must depend on foreign assistance.

In December 1999, Ethiopia signed a $1.4 billion joint venture deal with the Malaysian oil company, Petronas, to develop a huge natural gas field in the Somali Region. By the year 2010, however, implementation failed to progress and Petronas sold its share to another oil company.[22]

See also

Foreign aid to Ethiopia Famines in Ethiopia List of companies of Ethiopia Trade unions in Ethiopia

References

1. ^ Jump up to: a b c d e f "Ethiopia. CIA The World Fact Book". CIA Factbook. Retrieved 20 February 2013.

2. Jump up ̂ "Ethiopian inflation dropped in December to 12.9 percent". Walta Information. 11 January 2013. Retrieved 20 February 2013.

3. Jump up ̂ "Doing Business in Ethiopia 2012". World Bank. Retrieved 21 November 2011.

4. Jump up ̂ "Export Partners of Ethiopia". CIA World Factbook. 2012. Retrieved 2013-07-28.

5. Jump up ̂ "Import Partners of Ethiopia". CIA World Factbook. 2012. Retrieved 2013-07-28.

6. Jump up ̂ "Private Sector Boosts Ethiopia's Growth". IFC. Retrieved 27 December 2012.

7. Jump up ̂ "Ethiopia sells off seven state firms, to offer more". Reuters. 19 MARCH 2012. Retrieved 27 December 2012.

8. Jump up ̂ "A brittle Western ally in the Horn of Africa". The Economist. 11 November 2007. Retrieved 23 November 2007.

9. Jump up ̂ UPenn: Ethiopian Constitution10. Jump up ̂ "The Federal Democratic Republic of Ethiopia:

Selected Issues Series", International Monetary Fund Country Report No. 08/259, pp. 35f (Retrieved 4 February 2009)

11. Jump up ̂ "Get the gangsters out of the food chain". The Economist. 7 June 2007.

12. Jump up ̂ Food and Agriculture Organization (May 2004). "Livestock Sector Brief: Ethiopia". FAO Country Profiles. FAO. p. 1. Retrieved 7 November 2011.

13. ^ Jump up to: a b Blas, Javier; Andrew England (20 August 2008). "Arable Land, the new gold rush". Financial Times (London). Retrieved 6 November 2009. "Meles Zenawi, the prime minister of Ethiopia, is also enthusiastic. After welcoming a Saudi agriculture delegation a fortnight ago, he said: 'We told them [the Saudis] that we would be very eager to provide hundreds of thousands of hectares of agricultural land for investment.'"

14. ^ Jump up to: a b c d e Ethiopia country profile. Library of Congress Federal Research Division (April 2005). This article incorporates text from this source, which is in the public domain.

15. Jump up ̂ Matthew Newsome, "Gold mining promises big boost for Ethiopia's development", The Guardian (30 August 2012)

16. Jump up ̂ "Sinco Places a Bet", Time, 17 September 1945 (Retrieved 14 May 2009)

17. Jump up ̂ "UNdata country profile: Ethiopia". Retrieved 15 July 2011.

18. Jump up ̂ IMF19. Jump up ̂ Earthtrends20. Jump up ̂ "Ethiopian coffee: The best in the world?" African

Business, 2001. (Retrieved 24 January 2007)21. ^ Jump up to: a b c d Pavanello, Sara 2010. Working across

borders - Harnessing the potential of cross-border activities to improve livelihood security in the Horn of Africa drylands. London: Overseas Development Institute

22. Jump up ̂ "Petronas sells Ethiopian assets to SouthWest" Upstream Online news, 6 October 2010. (Retrieved 10 December 2010)

 This article incorporates public domain material from websites or documents of the CIA World Factbook.

External links

Economy of Ethiopia on the Open Directory Project Addis Fortune, an online economics and finance journal Ethiopia in Talks Over Use of Somali Port - The East African Standard

(Nairobi), 27 May 2005 Ethiopia latest trade data on ITC Trade Map Ethiopia has a marginal tax rate of 89% on farmers' profits National Bank of Ethiopia: History of banking in Ethiopia Pieter Serneels, "The Nature of Unemployment in Urban Ethiopia",

WPS/2004-01, Centre for the Study of African Economies website

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What is Ethiopia's major industry?

In: Jobs, Ethiopia, Industries and Professions [Edit categories]

Answer: Food processing is the main industry in Ethiopia. It also

produces sugar, alcohol and soft drinks, cigarettes, textiles, footwear, soap, ethyl alcohol, quicklime and cement.

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Created in Atlanta, Georgia on 8 May 1886, the first Coca-Cola was described as “delicious and refreshing”. Not much has changedsince then, and there’s still nothing better than an ice-cold Coke to quench your thirst.

The Coca-Cola contour bottle, which dates back to 1915, is the most recognised packaging in the world today, and the exact formula is a famous trade secret. Over time the Coca-Cola brand has come to mean more than a drink, achieving celebrity status inmany spheres of society. It represents the power of optimism and

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That’s why Coke is aligned with properties that embody the brand experience. In South Africa, these “feel-good” platforms include football, music, holidays, food and summer. Across a range of media channels, you’ll often hear about the involvement of Coca-Cola in landmark initiatives, like Coca-Cola Football Stars, My Coke Fest, Coke & Food, and much more.

Coca-Cola is the only brand in the world to have an entire museumthat showcases its history, current reality and future possibility. The New World of Coca-Cola in Atlanta is open to thepublic and is a “must see” if you are ever in that city. Coca-Cola contains sugar, high carbonation levels and caffeine.

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© 2012 The Coca-Cola Company Privacy Policy Terms of Use

In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the

Coca Cola formula in a three legged brass kettle in his backyard.The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson.

Birth of Coca Cola

Being a bookkeeper, Frank Robinson also had excellent penmanship.It was he who first scripted "Coca Cola" into the flowing letterswhich has become the famous logo of today.

The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.

About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expanses, so the first year of sales were a loss.

Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut.

Asa Candler

In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the formula for Coca Cola from inventor John Pemberton for$2,300. By the late 1890s, Coca Cola was one of America's most popular fountain drinks, largely due to Candler's aggressive marketing of the product. With Asa Candler, now at the helm, the Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900.

Advertising was an important factor in John Pemberton and Asa Candler's success and by the turn of the century, the drink was sold across the United States and Canada. Around the same time, the company began selling syrup to independent bottling companieslicensed to sell the drink. Even today, the US soft drink industry is organized on this principle.

Death of the Soda Fountain - Rise of the Bottling Industry

Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counterserved as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants became popular.

New Coke

On April 23, 1985, the trade secret "New Coke" formula was released. Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day.

Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda

fountains. He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with carbonated water and deemed “excellent” by those who sampled it. Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca-Cola” as well as designing the trademarked, distinct script, still used today.

Did you know? The first servings of Coca-Cola were sold for 5 cents per glass. During the first year, sales averaged a modest nine servings per day in Atlanta. Today, daily servings of Coca-Cola beverages are estimated at 1.8 billion globally.

Prior to his death in 1888, just two years after creating what was to become the world’s #1-selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with the majority of the interest sold to Atlanta businessman, Asa G. Candler. Under Mr. Candler’s leadership, distribution of Coca-Cola expanded to soda fountains beyond Atlanta. In 1894, impressed by the growing demand for Coca-Cola and the desire to make the beverage portable, Joseph Biedenharn installed bottling machinery in the rear of his Mississippi soda fountain, becoming the first to put Coca-Cola in bottles. Large scale bottling was made possible just five years later, when in 1899, three enterprising businessmen in Chattanooga, Tennessee secured exclusive rights to bottle and sell Coca-Cola. The three entrepreneurs purchased the bottling rights from Asa Candler for just $1. Benjamin Thomas, Joseph Whitehead and John Lupton developed what became the Coca-Cola worldwide bottling system.

Among the biggest challenges for early bottlers, were imitations of the beverage by competitors coupled with a lack of packaging consistency among the 1,000 bottling plants at the time. The bottlers agreed that a distinctive beverage needed a standard anddistinctive bottle, and in 1916, the bottlers approved the uniquecontour bottle. The new Coca-Cola bottle was so distinctive it

could be recognized in the dark and it effectively set the brand apart from competition. The contoured Coca-Cola bottle was trademarked in 1977. Over the years, the Coca-Cola bottle has been inspiration for artists across the globe — a sampling of which can be viewed at the World of Coca-Cola in Atlanta. Check out a preview of the latest art exhibit.

The first marketing efforts in Coca-Cola history were executed through coupons promoting free samples of the beverage. Considered an innovative tactic back in 1887, couponing was followed by newspaper advertising and the distribution of promotional items bearing the Coca-Cola script to participating pharmacies.

Fast forward to the 1970s when Coca-Cola’s advertising started toreflect a brand connected with fun, friends and good times. Many fondly remember the 1971 Hilltop Singers performing “I’d Like to Buy the World a Coke”, or the 1979 “Have a Coke and a Smile” commercial featuring a young fan giving Pittsburgh Steeler, “MeanJoe Greene”, a refreshing bottle of Coca-Cola. You can enjoy these and many more advertising campaigns from around the world in the Perfect Pauses Theater at the World of Coca-Cola.

EVOLUTION OF THE COCA-COLA BOTTLE

The 1980s featured such memorable slogans as “Coke is It!”, “Catch the Wave” and “Can’t Beat the Feeling”. In 1993, Coca-Colaexperimented with computer animation, and the popular “Always Coca-Cola” campaign was launched in a series of ads featuring animated polar bears. Each animated ad in the “Always Coca-Cola” series took 12 weeks to produce from beginning to end. The bears were, and still are, a huge hit with consumers because of their

embodiment of characteristics like innocence, mischief and fun. Afavorite feature at the World of Coca-Cola is the ability to haveyour photo taken with the beloved 7′ tall Coca-Cola Polar Bear.

Did you know? One of the most famous advertising slogans in Coca-Cola history “The Pause That Refreshes” first appeared in the Saturday Evening Post in 1929. The theme of pausing with Coca-Cola refreshment is still echoed in today’s marketing.

In 2009, the “Open Happiness” campaign was unveiled globally. Thecentral message of “Open Happiness” is an invitation to billions around the world to pause, refresh with a Coca-Cola, and continueto enjoy one of life’s simple pleasures. The “Open Happiness” message was seen in stores, on billboards, in TV spots and printed advertising along with digital and music components — including a single featuring Janelle Monae covering the 1980 song, “Are You Getting Enough Happiness?” The happiness theme continued with “Open the Games. Open Happiness” featured during the 2010 Winter Olympic Games in Vancouver, followed by a 2010 social media extension, “Expedition 206″ — an initiative whereby three happiness ambassadors travel to 206 countries in 365 days with one mission: determining what makes people happy. The inspirational year-long journey is being recorded and communicated via blog posts, tweets, videos and pictures.

Experts have long believed in the connection between happiness and wellness, and Coca-Cola is proud to have played a part in happy occasions around the globe. In Atlanta, check out the Happiness Factory Theater at the World of Coca-Cola and see the magic that goes into every bottle of Coca-Cola. Interested inlearning even more about Coca-Cola history? Go to www.coca-colacompany.com and check out the History section.

East African Bottling Sees Ethiopia as Number One Market

The share company plans to invest 8.8 billion Br in eight years to expand operations

   

East African Bottling Share Company (EABSC) is on an eight-year investment spree of nearly nine billion Birr, intended to make Ethiopia its number one market in Africa bythe year 2020.

The decision came after a study commissioned by the South African Beverage Company (SABCO) Coca-Cola, which holds an 82pc share in the Ethiopian company. The study was undertaken by two international banks, which were paid millions of dollars. Greig Jansen, managing director of the Ethiopian company, declined to identify the banks or state the sum paid to them for the study.

Ethiopia is among the top 10 fastest growing marketplaces in Africa for Coca-Cola, currently holding the fourth rank in market share, following South Africa, Kenya, and Uganda, according to Jansen.

EABSC found confidence in its investment decision of 500 million dollars, about 8.8 billion Br, in the findings of the study, the vastly improving infrastructure, the huge and growing population, and the growth of the country’s GDP per capita, accordingto Jansen.

“If you are serious about investing, you cannot afford not to invest in Ethiopia,” he said.

The decision is embodied in the company’s Plan 2020, which has been under implementation since the beginning of 2012. The plan incorporates new buildings, new plants, expansion of existing plants, diversification of products, and the expansion of distribution channels.

Already underway is the construction of a five-storey production building in the company compound at Abnet area in Lideta District, on Balcha Aba Nefso Street. The construction, contracted to Elmi Olindo & Co, will be exclusively used for production-related purposes, including storage of stock and raw materials.

It will be the only such facility in Africa for Coca-Cola SABCO, according to Jansen. This building as well as a two-storey regular training building and a technical training centre, which are yet to be constructed, will cost close to 18.6 million

dollars or 330 million Br.

Elmi Olindo & Co, in business since 1945, has also an established business relationship with EABSC. It executed Coca-Cola factory rehabilitation work from 2001 to 2003 and performed the expansion work for the Dire Dawa Plant, which replaced the old production line of the plant, at a capacity of two million cases a year, by a new modern production line at a capacity of seven million cases.

It started the construction of the building in Addis Abeba on Wednesday, April 11, 2012, committed to deliver it by October 2012.

These buildings are part of a 52 million-dollar or 923 million-Br expansion, intended for the Addis Abeba Plant, including the installation of two additional production lines, bringing the total to five. One of these lines will be dedicated to packaging the company’s beverages in plastic bottles.

The original expansion of the Dire Dawa Plant, which saw production grow to seven million cases, as of February 2012, cost 20 million dollars. The new expansion, expected to cost the same amount of money as part of Plan 2020, will see the installation of one more line in 2012/13.

When the Addis Abeba and Dire Dawa expansions are finalised, the company expects a total annual production of 45 million cases.

The plan includes three new plants in Bahir Dar, Hawassa, and a third plant to be located in western Ethiopia in a city yet to be identified, according to Jansen. Construction of the Bahir Dar plant will begin in August or September 2012, with production expected to begin in June 2013.

The Bahir Dar plant, which will cost about 40 million dollars, will have one production line with a production capacity of 15 million cases a year.

“The construction of the two other new plants in Hawasa and another western city will be based on the performance of the other lines,” Jansen said.

In May 2012, EABSC will officially add Fanta Strawberry to the already existing Coca-Cola, Fanta, Sprite, Fanta Pineapple, Coke Light, and Schweppes Tonic product lines, but new the product is already on the market.

Three of the 40 trucks that EABSC ordered from Automotive Manufacturing Company of Ethiopia (AMCE) and Nyala Motors SC for five million dollars arrived on Monday, April 9, 2012, according to Jansen. The rest will follow, but Jansen did not specify the timeframe. The company also has set up a water treatment plant, with a total investment of five million dollars and a total capacity of 1.5 million litres a second. The plant treats all used water, which the company then releases in to a river, Jansen said.

Coca-Cola started production in Ethiopia in 1959, with the plant in Addis Abeba. The Dire Dawa Plant came in 1965. It was nationalised by the Derg Regime and then

privatised in 1996.

The original shareholders, when it was privatised, were Negussie Hailu, Munir Duri, Bereket Haregot, Kassim Hussien, and a fifth shareholder. Now, 82pc of the company is owned by Coca-Cola SABCO, having acquired all or most of their shares, the remaining 18pc is owned by two of the original shareholders, Negussie and Munir, as well as Dereje Yesuwork, and Abinet G. Meskel, close confidants of the Saudi tycoon Mohammed Ali Al-Amoudi.

The company’s turnover in 2010/11 was 100 million dollars, but Jansen would not say what the profit was. However, satisfied with its performance, the company has granted bonuses to its 1,000 permanent employees amounting to 3.25 to 6.5 times their salaries.

Coca-Cola SABCO operates in six other southern and eastern African countries and five Asian countries, with a total production capacity of half a billion cases as of 2010/11. It also owns a 27-storey production building in Hong Kong.

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 OUR PURPOSE

“Continually increasing profitable, sustainable unit case sales of ourproducts by satisfying new and existing consumers: through excellent service to and with our customers at an increasing return.” ABOUT US

Coca-Cola was first bottled in Ethiopia’s capital, Addis Ababa, in 1959 by the Ethiopian Bottling Share Company, which later opened a second branch in Dire Dawa in 1965. The two plants were nationalized in 1975 and ran as public companies until 1996 when they were bought by Ethiopian entrepreneurs through privatization. Just prior to this, in 1995, Coca-Cola Sabco bought shares in the business and, in 1999, signed joint venture agreement with Ethiopian owners. With its leadership working hand in hand with employees, the business has seen significant growth over the years. Processes and functions have improved, resulting in considerable salesincreases. East Africa Bottling Share Company as a Coca Cola Franchise Bottler inEthiopia under Coca Cola South Africa Bottling Company (CCSABCO) has two production plants in Addis Ababa and Dire Dawa with an aggressive expansion plan throughout the country, hence bringing the total numberof employees to more than 1,400.  Coca-Cola SABCO Today:

9 Countries with  multiple plants Service approximately 250 million consumers More than 10, 000 employees.

 WHAT WE DO

EABSC produces a wide range of beverage products - Coca-Cola, Fanta (Orange, Pineapple & Strawberry), Sprite, Schweppes tonic and Coke Light.

The company distributes its products through different channels mainly through Agents, Manual Distribution Centers and Depots to reach its consumers.

 OUR VALUES

We will create STRETCH CULTURE based on;

o Integrity ………….Be honest, open and sincereo Individual Initiative …………. Take pro-active steps to drive

performanceo Customer Value ……….. Exceed customer expectation and add value to

customers’ businesso Team Work ………… Work with and support colleagues to raise overall

performanceo People Development ………. Realize employee potential through

training and developmento Mutual Trust and Respect ……….. Trust each other with respect and

dignity and earn trusto Commitment ……… Be accountable and do as you say 

 OUR CORPORATE SOCIAL RESPONSIBILITY  As a member of the global Coca-Cola System, Coca-Cola Sabco is evermindful of the way in which we do business and are proud to havealigned ourselves with the Company-wide Live Positively/Live for aDifference campaign. The challenges we face as an emerging marketspecialist operating in nine territories throughout Africa and Asiaalso present numerous opportunities to do well on many levels.

 

We are guided in this by a framework built on the three pillars ofeconomic, social and environmental sustainability. It is first andforemost our job to grow the business responsibly; not just for ourshareholders but also for those we employ and the communities weserve. Creating economic sustainability provides the financialresources we need to carry out our programmes and initiativessuccessfully.

 Social sustainability is achieved from within by enabling our workers to achieve their full potential, thereby assuring the production and delivery of safe, quality products to our consumers. We approach sustainability issues as with any aspect of our business –by setting clear, measurable targets and establishing key performance indicators to assess our progress. With over 70 years in the bottling business, sustainability is not just an integral part of our thinking – it’s the secret of our past successes and the key to our future. We have been paying back to the community in the following major areasamong others;

Clean water for all projects School development – KG and Coca Cola University Live for a difference – Coca Cola Road Race Series Touch - to drive employee corporate social responsibility

involvement in different community services Environmental Protection – Tree planting and waste water

treatment plant Five by Twenty – women empowerment

 OUR STAFF  Currently, EABSC has an excited large family consisting of more than1,500 permanent and temporary employees. We take pride in our highlyqualified, experienced, dedicated, and motivated employees. EABSCstaff comprises of Expatriates and local professionals with differentqualifications including Economists, Engineers, Accountants,Administrators, Technicians, Operators, Planners, Logisticians,Procurement Specialists, Human Resource Specialists   and variousspecialists with expertise and experience in Manufacturing Industry.

 

We value individuals who possess the highest standards of efficiencyand competence. We give equal opportunities for employment, promotion,and assignment without bias for nationality, ethnicity, gender, orreligion.

 CAREER AT EABSC In line with our aggressive expansion strategy to reach our targets infulfilling our consumers’ needs, through;

o Our current undergoing PET Line project;o Aim to open three more plants before 2020o Becoming Coca-Cola Sabco’s biggest market in Africa,

the company is undergoing massive recruitment for immediate needs andto develop the talent pipe line for senior and leadership role of thebusiness. We recruit experienced professionals and   fresh graduatesin different field of studies at different levels and looking forpassionate, capable and competent candidates to join our team whosustain Company purpose.

COME WORK WITH US If you…

are committed to/interested in our vision interested to advance your career in multinational environment

where dynamism is a culture possess a good academic background have considerable expertise in your profession have positive attitude are quick learner & flexible are able to work as a team are proficient in both written and spoken English; and can work with individuals of different nationalities and cultures

  HOW WE SELECT OUR EMPLOYEES

 

Our Human Resources Competency follow rigorous recruitment andselection process through objective, fair and transparent assessmenttools to evaluate applications and select best candidates with theright skill, knowledge and attitude.

 COMPENSATION AND BENEFITS 

We offer a compensation and benefits package that is competitive andcomparable with other market players in the industry and labor market.

 PROFESSIONAL ADVANCEMENT 

Promotion and salary advancement are determined by merit based on afair, equitable, and transparent performance measurement process, andthe employee’s capability to assume increased responsibilities throughinternal recruitment process.

 

Managers regularly review employee performance to obtain the mosteffective use of their services and expertise. We actively encourageour employees to upgrade their skills and broaden their experience indifferent functional areas through training and career developmentopportunities by investing on employees learning and developmentprogram.

 THE WORK PLACE 

Our headquarters is Addis Ababa, where our plant is located. Besideswe have the second plant in Dire Dawa and operate Eight Depots indifferent parts of the Country. 

 WHERE YOU CAN FIND US East Africa Bottling Share Company, Jimma Road;P.O. Box 1346, Addis Ababa, EthiopiaTel.: +251 112 756 114/ 112- 765103 - 08Fax. + 251 112 753 152/112 778 486www.ccsabco.co.za