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Coca Cola plant in Mogadishu

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The Daily Nation Tuesday, Feb 17, 2003


(Nairobi, Kenya) -- Soft drinks company Coca Cola yesterday defended its decision to change its distribution strategy in Nairobi.


Sales manager Ndema Ndena said the move to reduce distributors' territories and increase direct supplies to consumers had improved the availability of the firm's soft drinks.


He told a business workshop in Nairobi that better distribution to 43,000 outlets had improved sales by 8 per cent over last year's.


Distributors have opposed the new system, which bypasses some of them and cuts their profit margins from 9 to 5 per cent.


Last month, 73 distributors went to court and obtained an order requiring the company to continue supplying them with its products. Coca Cola was also restrained from supplying retailers instead of through the distributors.


The distributors downed their tools early last month to protest at what they termed low payment, causing a major shortage of soft drinks countrywide. The shortage resulted in a 50 per cent rise in prices of Coca Cola products.


At the same time, the company called for the scrapping of excise duty on carbonated soft drinks.


External affairs director Maina Kariuki said the company was still awaiting the result of an investigation by the Monopolies Commission, over its ownership of major bottling companies in Kenya. He added that a Coca Cola bottling plant would open in Mogadishu, Somalia, later this year.







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Hopefully this will bring some employment to the region which is much needed. I wonder though what warlord they struck a deal with and who will be assuming their security. What ever warlord that is, he is showing some business savy (not bad at all). I get the feeling somalia is becoming another mexico to the US, where companies might move some operations from Kenya due to cheaper labor and marginal cost of production given that Mogadisho has a port.

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Her is link to the somalia United Bottling Company website . Most of the 375 shareholders are somali .


"Warshada Coca Colo Oo Dhowaan Bilaabeysa "


Waxaa dhowaan laga hirgeliyay magaalada Muqdisho warshad soo saarta Cabitaanka Coca cola, Fanta, taasoo ay iska kaashadeen saamiley Soomaali ah oo tiradoodu lagu sheegay 380 qof.


Waxaana la sheegay in la geliyaya lacag dhan 10 milyan oo US$ ah si loogu sahlo dadka magaalada Muqdisho degan iney helaan cabitaanka warshadaasi waxaana hadda socda imtixaankii shaqaaalii shirkaadaasi ka shaqeyn lahaa oo tiradooda lagu sheegay 125 ruux, wuxuuna sheegay maamulaha faraca Muqdisho ee warahsada Coca Cola Mr. Cabdirisaaq Ciise Abtidoon in aqoon loo soo xuli doono, waxaana lagu wadaa in dhamaad bishaan ay warshada bilaabi doonto wax soo saarkeeda iyadoo ku bilaabi doonta magaalada Muqdisho kadibna waxaa u qorsheysan iney ku baahiso degmooyinka ku xeeran magaalada Muqdisho, Waxaana la filayaa in dhowaan ay dalka soo gaari doonaan madaxda Shirkada Coa Cola si ay uga qeyb qaataan furitaanka warshadda.


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This is the kind of development and investment our nation needs. We should be investing in manufacturing to create jobs and improve the quality of life for this generation and (more importantly) future generations. I doubt it cost 10 million USD, but this example can and should be repeated across Somalia.


Somalia must industrialize it's economy in order to escape the poverty and underdevelopment so prevelent in the 3rd world.


Here is another Story:


Foreign-Educated Somalis Give Up Lucrative Incomes Abroad to Serve Homeland



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Somali's Coca-Cola venture either 'crazy or very smart'


February 23, 2004


By Reuters


Nairobi - Defying his broken country's many pessimists, a Somali businessman, AbdiRisak Isse, unveiled plans on Friday to bottle Coca-Cola in chaotic Mogadishu, a city with no police, no insurance and only gun law.


The plant is built and the machinery ready to start up late this month or early March, in an eye-catching display of nerve in a capital of 1 million people roamed by an estimated 60 000 gunmen with rifles, truck-mounted machine guns and grenade launchers.


Isse said he was relying on the self-interest of the clan system to protect the plant, by drawing in partners from as wide a range of communities as possible

'I advise the Somalis abroad to do something useful for this desperate country'



"People think I'm either crazy, ambitious or very smart," Isse, the chairman of Somalia's United Bottling Company, said in an interview from the shell-cratered city.


"But I know when to take a chance. If I didn't do it now, someone else will."


The country has had no government since the 1991 overthrow of military ruler Mohammed Siad Barre. Militia feuding and famine have killed hundreds of thousands.


Somalia is so damaged that it is largely absent from UN development rankings. In many areas it is too dangerous for researchers to gather data on nutrition, education and health.


But Isse's venture in north Mogadishu's Towfiiq district is the latest evidence of renewed interest from the Somali diaspora in the capital's resurgent business and professional community.


The businessman, who holds a Swedish passport, returned from Sweden five years ago to try making money in his homeland. He has joined forces with other Somali investors to finance and build the 12 000m2.



The business will revive a commercial link between the Horn of Africa country and the global brand that was cut when civil war engulfed the once-elegant capital.


The site will employ just 125 employees to fill about 30 000 bottles an hour, but Isse reckons it will lead to the creation of 5 000 small kiosk businesses.


"It means employment for the people and it is joblessness that creates insecurity, so I don't feel a threat from Somali society."


The past three years have seen a return of middle-aged Somali professionals who spent their early careers overseas but now want to risk coming home, sensing the worst is over and a time to take opportunities.


Isse is not worried that there is no government or police to call on if thirsty militia men loot the site, or that, in common with many Somali firms, conventional insurance cover has been impossible to find.


"I want other Somalis to also come back and invest in their country," said Isse. "We trust the people will protect our business."


Nor is he worried by latent anti-Americanism in a city where a UN force in which the US military had a major role killed thousands of Somalis in the early 1990s.


"My message to the Somalis is first of all that this business belongs to you. And second, to the Somalis abroad, I advise them to do something useful for this desperate country."


Maina Kariuki, Coca-Cola East Africa director for public affairs, confirmed that Isse's venture would be bottling the US-based multinational's soft drink on a franchise basis.


click here for link

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what? a coca- cola plant in Somalia. No way! This can't be!


This is the worst idea that anyone could possibly have. Forget about the possibility of employment for our brothers in Somalia and think about what Coca-Cola symbolizes. Coca - Cola is a well known to distribute its funds to Israel and this is what is killing our Palestinine brothers and sisters.

How can you stand and let this happen.


Coca- Cola not only supplies money to killers but it actively causes the deaths of many of it employees in other third world countries.


Think of how many have died and will die at the hands of this company.


The main goal of this company as they have already stated, is to take over the world. And they have to some extent. This can be seen in the Mayan people who have now incorporated Coke into their religious rituals. It has become a holy drink for them.

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Yeah whatever...the only thing I got to say is that I'm proud of the reer Xamar.


They live in such hard sircumstances and have to deal with greedy warlords ...and still they manage to build this plant. Without a doubt the largest plant in Somalia and....



Horumar, Horumar, Horumar!!!! Mansha Allah

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I think this is a great business idea! it gives hope to all the entrepreneurs out there who wish to invest in the fatherland. the truth is there is a great potential in Somalia, when it insha'Allah wakes'up, it will succeed. I advice all the yough nomads in here to consider investing back home for the long-term!



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