Ashly DhaniTapiwanashe Mangwiro
Schweppes Zimbabwe is making a strategic move to secure the future of its iconic Mazoe Orange Crush by launching a US$28 million citrus project.
This initiative aims to take control of the company’s orange supply chain and facilitate expansion into the Botswana market.
Schweppes, which heavily depends on local farmers for its fruit supply, acquired 4,000 hectares of land from the government two years ago.
The company plans to start citrus production on 700 hectares over the next two to three years.
Economist, Tinevimbo Shava said; “The significant investment will undoubtedly strain Schweppes’ finances in the short term. However, the long-term benefits, including a stable supply chain, potential cost savings and increased exports, could significantly improve the company’s financial position.”
The decision comes in response to fluctuations in the supply and quality of oranges from farmers, which have raised concerns about the long-term sustainability of the Mazoe brand.
Mazoe is a cornerstone of Schweppes Zimbabwe’s beverage portfolio, contributing 60 – 70 percent of the company’s revenue.
By investing in this project, Schweppes aims to achieve vertical integration, ensuring a stable and reliable supply of oranges.
However, the project is a long-term investment.
Schweppes estimates that raising the US$25-28 million required will take several years, with the full benefits expected to be realised over an extended period.
“The project could pose a challenge to current suppliers, who may see their market share shrink as Schweppes takes control of its own supply chain. However, the project could also create opportunities for collaboration and knowledge sharing, benefiting the broader agricultural sector,” Shava said.
At its peak, the project is projected to generate US$31,5 million in exports, reinforcing Schweppes Zimbabwe’s position as a leading regional player in the beverage industry.
Online Reporter