Ethiopia runs out of coke drinks as company shuts down
March 31, 2009 (ADDIS ABABA) — Ethiopia has this week run out of Coca-Cola following the closure of its local bottler ,The East African Bottling Share Company (EABSC) two weeks ago.
EABSC suspended operations on mid March saying it no longer has enough foreign currency to adequately import raw materials needed for full-scale production.
The East African Bottling Share Company, as alternative has been trying to replace imported raw materials by locally produced ones; however, it has not yet managed to substitute all supplies.
“We still import raw materials like crown cork, concentrate, spare parts, etc” the company said in a statement.
Among the soft drinks available, Coca cola is the most preferred one to almost all Ethiopians. Every day millions of bottles of coca drinks are sold out.
Hotels bars and vending stores in the capital Addis Ababa and in many other major cities of the country have ran out of the soft drinks this week and began offering other brands like Pepsi to customers.
“It is so shame that an African seat and a destination to thousands of tourists, have gone out of coca drinks.” Tour agent Asnake Girma told Sudan Tribune
The closure of the factory has forced more than 1,000 employees to go home without job and has affected the livelihood of tens of thousands of people who were beneficiaries from the supply chain of the company.
The East African Bottling Share Company would be the first soft drink company in Africa to close down due to financial problems related to foreign currency shortage.
The company runs bottling plants in Ethiopia, Kenya, Namibia, South Africa, Tanzania, and Uganda.
The Coca-Cola Company in Ethiopia began in 1959 and opened its second branch in Dire Dawa in 1965. EABSC produces Coca Cola, Fanta and Sprite. It also produces carbonated water under the brand name Crystal.
(ST)