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KOSCAB Holdings Ltd. Purchases BBC
June 30, 2017
FRIDAY, JUNE 30, 2017
KOSCAB Holdings Ltd. Purchases Barbados Bottling Co. Ltd.
Regional Coca-Cola bottling partner KOSCAB Holdings Ltd. has recently concluded a deal to purchase Barbados Bottling Company Ltd (BBC), the local Coca-Cola bottler, from Banks Holdings Ltd (BHL).
The proposed sale is subject to various conditions and is only certain to proceed when the parties have completed their negotiations, executed certain amendments to the conditional share purchase agreement, obtained all Barbados regulatory approvals including approval from the Fair Trading Commission (‘FTC’) and satisfied certain conditions. The expectation is that BHL will officially transfer ownership to KOSCAB as soon as the conditions are satisfied and the parties have received the approval from the FTC.
This sale, if approved, will allow Barbadians to continue enjoying Barbadian-made Coca-Cola and will see the retention of ALL staff at the operation.
This business deal will also allow BBC to retain its name and its bottling rights to produce Coca-Cola and its affiliated brands.
BHL’s Director of Integration Daniel Levorin said “Operating in their best interest, Coca-Cola had been initiating changes to their business model in the Caribbean region. This saw the termination of contracts in territories like St. Kitts and Grenada. As was communicated, we too were operating in a period of uncertainty and the long term future of the contract was unknown. Negotiations have been ongoing for many months and a proposal was offered where BBC would be sold to KOSCAB and all rights to produce Coca-Cola and its allied brands would be retained,” he said.
The Director of Integration went on to laud the staff at BBC for their tremendous efforts in manufacturing one of the world’s most influential brands for the past 72 years. “KOSCAB will inherit a strong team which has long met and in some instances surpassed international targets and I am confident that they will continue to make their presence felt in this part of the region” he said.
The sale of BBC to KOSCAB follows the acquisition of BHL by global giant AB InBev in December 2015.
KOSCAB is a regional Coca-Cola bottling partner with operations in Grenada, St Vincent, St Kitts and Antigua. Managing Director of KOSCAB Holdings, Carlos Diaz said this latest development proved the most positive outcome for all involved. He notes the group has decades of experience in the Beverage industry and stands ready to bring that experience to the Barbados market. “We are confident that this new partnership will enable us to continue to exceed the expectations of our local consumers and customers, who will keep enjoying the highest quality products and service to which they are accustomed.
“We have significant confidence in the Barbadian market and we look forward to establishing a world class bottling operation in Barbados. Coca-Cola had been initiating some changes for quite some time to their business model in the Caribbean Franchise Unit. This has allowed KOSCAB to take over the bottling/distribution operations in St. Kitts, Grenada, St Vincent, Antigua and now Barbados. As we did in these markets, there will be major investment in developing the Coca-Cola beverage business here in Barbados”.
He also said that ALL employees currently employed at BBC are expected to be assimilated into the new operation which will be headed by former BBC and BHL Commercial and General Manager Andre Thomas.
“We have been using this week to inform internal and external stakeholders of the change. In addition to the current BBC employees, it will be necessary increase our headcount as we build a complete beverage business.
BBC has been a regional beacon in the Coca-Cola bottling network for the past 72 years. The company has demonstrated tremendous competency in manufacturing one of the world’s most influential brands during that period. BBC has been a stellar bottler and guardian of the Coca-Cola image since 1945 and has received several accolades throughout this period, KOSCAB Barbados will work to preserve this legacy.”
CAP.1: The Barbados Bottling Co. Ltd. has been sold to KOSCAB and in addition to retaining its full staff complement, will continue to produce and bottle Coca-Cola and its allied brands in Barbados.