Coca-Cola African Beverages (CCBA) will invest in the design and collection of plastic packaging to enhance its sustainability and recycling capabilities. The company also plans to develop new recycling models and partnerships to turn its bottles into valuable resources that drive the circular economy.
CCBA Chairman Jacques Vermeulen said: “The challenge of post-consumer packaging begins with the packaging itself. We are using more recyclable ingredients to reduce the amount of plastic in the bottles and use plant-based resins. This investment will stimulate the plastic recycling industry. Development, and we will increase publicity efforts to promote the content, methods and locations of recycling."
In 2004, Coca-Cola and its South African bottling partner established Petco, a voluntary initiative to promote post-consumer recycling of PET.
Vermeulen explained: “It helped to build a sustainable recycling industry. South Africa’s PET recycling rate has increased from 16% in 2005 to 66% in 2018, which is in line with the EU. Thanks to this initiative, in 2017 alone, South Africa More than 2 billion PET bottles were collected and recycled. This injected 966 million rand ($66 million) into the economy, creating opportunities for 64,000 people and creating a foundation for a self-sufficient recycling value chain."
According to Vermeulen, recycling is a big problem for governments, companies or society and cannot be solved on its own. “If we work together and everyone takes responsibility for their role in the supply chain, we can overcome this problem.”
For example, in June last year, in cooperation with the Coca-Cola Company and the Kenyan Manufacturers Association, Petco was launched in Kenya as an industry extension producer responsibility program.
At the same time, in Uganda, CCBA's plastic recycling industry company, in collaboration with government and community stakeholders, has expanded its recycling business to the town of Masaka.
Vermeulen added: “In Namibia, Mozambique, Zambia and Botswana, we have contracts with local recyclers in South Africa to speed up the collection and recycling of these countries. Recently, our bottled water business in Ghana, Voltic and Ghana Total Oil In collaboration with local plastic waste collector Coliba, the #Irecycle program was launched to encourage garbage collectors to collect garbage after PET consumption."
These initiatives form part of the Coca-Cola Company's commitment to recycling 100% of packaging materials in 2030.
Previously, Coca-Cola decided to continue to hold a majority stake in CCBA for the foreseeable future. The company previously announced its intention to regain CCBA's franchise and has begun negotiations with a number of potential partners.
Brian Smith, President and Chief Operating Officer of the Coca-Cola Company, said: "CCBA is a very important part of the Coca-Cola system. We have seen tremendous opportunities to create more value. Although we are still committed to the franchise process, we believe Coca-Cola continues to hold It is in the best interest of all parties involved to operate CCBA."
Founded in 2016, CCBA was formed by the merger of the South African Miller Company, the Coca-Cola Company and the Gutsche Family Investment Company's African non-alcoholic ready-to-serve bottling business.
Anheuser-Busch InBev subsequently acquired South Africa's Miller Company and reached an agreement to transfer the 54.5% stake held by Budweiser InBev in CCBA to Coca-Cola. The 2017 transaction made Coca-Cola a controlling shareholder of CCBA.