The Aujan Coca-Cola Beverages Company (ACCBC) has announced plans to invest around $500 million in the Middle East and North Africa region over the next three years as part of its regional expansion.
“Major investments in capacity, geographical coverage, and brand development will allow us to capitalise on the growth potential for the beverage industry in the MENA region,” said Nicolaas Nusmeier, CEO, ACCBC.
“Despite political and economic disruption over the past few years, the regional beverage market has continued to grow, and we expect this to continue.
“For ACCBC, an increasingly youthful population across MENA together with opportunities for new categories and fresh consumer-focused innovations mean significant growth prospects.”
ACCBC was established in December 2011 following a $1 billion joint venture between the Coca-Cola Company and Saudi-based Aujan Industries.
The company, which manufactures beverage brands such as Rani and Barbican, achieved double-digit growth last year, buoyed by a significant acquisition and ambitious expansion plans.
Last year, ACCBC completed the purchase of a majority stake in the Lebanon-based National Beverage Company, the firm that manufactures and distributes brands such as Coca-Cola and Pampa in Lebanon.
ACCBC also achieved significant growth in Algeria, with one of its brands, Rani, recording sales growth of 300 per cent over the last four years, a statement said.
“We believe that Rani can achieve market leadership in Algeria within the next three to five years,” said Nusmeier.
The beverage manufacturer also confirmed its plans to invest in a factory in Egypt that will help supply the company’s brands to the Egyptian market and across other African markets.
ACCBC currently owns three manufacturing facilities in Dammam, Dubai and Beirut.
Food and beverage (F&B) retailers have been thriving in the region due to the fast growing population. As a result, many have also expanded their regional manufacturing capabilities.
Recently, beverage brand PepsiCo opened a manufacturing facility in Dammam, Saudi Arabia as part of its regional expansion drive.
This is in addition to the $345 million that PepsiCo plans to invest in Egypt over the next three to five years in partnership with Saudi-based diary firm Almarai.