2018 REVIEW OF OPERATIONS: SCHWEPPES HOLDINGS AFRICA LIMITED

Schweppes Holdings Africa through its main operating entity Schweppes Zimbabwe Limited is a manufacturer and distributor of non-carbonated, still beverages under licence from The Coca-Cola Company.

The product portfolio includes cordials, fruit juices and bottled water. The Company vertically integrated into BeitBridge Juice Company which processes fruit juices mainly oranges and Best Fruit Processors which produces tomato paste for both local and export markets.

The business recorded an improved outturn for the year to December 2017, with group revenue of US$93,3 million up 4% and beverage volumes increasing by 1%. The performance in the quarter to March 2018 indicated a significant upturn in beverage volume which increased by 39%, reflecting the strong demand since October 2017. The processing divisions continue to be affected by the shortages of processing materials.

The business is exploring opportunities to export Mazoe Orange Crush and juice drinks into the region with the support of The Coca Cola Company.

The company is involved in a community development project in partnership with other donors to create sustainable income streams for small scale farmers.

The Shashe Citrus Outgrower Scheme in Maramani Communal Lands, Beitbridge District has engaged 200 families that have established a 90-hectare orange plantation. Given the long gestation period of citrus plantations, the farmers have been introduced to inter-row cropping to grow other crops such as sugar beans or vegetables between the orange trees. The partners provided the capital, extension services and monitor performance of the farmers. A total of 270 tonnes of oranges were delivered to the BeitBridge Juicing Company during the 2017 season. The output is expected to reach 7 000 tons by 2020. Schweppes Holdings Africa is replicating these outgrower schemes for tomatoes and other fruits to supply into both BeitBridge Juice and Best Fruit Processors.