In addition to CCA’s own range of products, we manufacture, distribute and sell the trademarks of The Coca-Cola Company (TCCC) across our six countries of operation.
CCA and TCCC are committed to building a sustainable growth strategy that delivers higher revenue and improved returns to CCA and allows TCCC to profit from building and delivering leading brands.
The relationship has three main components:
- Largest Shareholder
TCCC has approximately 30% shareholding in CCA and, like all shareholders, benefits from share price growth and the dividends paid. Two Directors of CCA’s seven member Board are nominated by TCCC.
- Supplier
Under a series of long term bottling agreements with varying expiry dates, TCCC provides the concentrate and beverage base from which the finished products are manufactured by CCA. Each year the companies jointly develop sales and marketing plans (which include brand strategies, marketing execution, in-market sales execution and wholesale pricing).
In line with corporate governance best practice, CCA’s Related Party Committee reviews the arms length basis of all material transactions with TCCC. This includes concentrate and beverage base pricing arrangements negotiated as part of the annual planning process. In 2002 the average cost of the concentrate and beverage base increased broadly in line with CCA’s realisation of wholesale price increases.
- Brand Owner
By being part of the Coca-Cola system CCA has access to the world’s most popular branded beverages supported by strong advertising and unique marketing properties. CCA and TCCC are working together to utilise their complementary skills and assets, to profitably build consumption in each of our market.
A broad allocation of responsibilities for marketing is as follows:TCCC is focused on consumer marketing, including advertising and promotion, the development of new brands, and innovative brand and packaging plans. These marketing activities are funded by TCCC.
CCA’s marketing activities are primarily focussed on developing and maintaining strong customer relationships, and implementing the marketing strategies and plans. This trade marketing is funded by CCA.
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