Abyssinia Springs and Nestlé Waters formed a joint venture (JV) for the purpose of carrying out bottled water business in Ethiopia. According to their agreement, Nestle will have majority stake in the JV.
Commenting on the development owners of Abyssina noted, ““We are very happy to welcome Nestlé Waters in Ethiopia and start this strong partnership. With the launch of this new venture, Nestlé will be manufacturing in our country for the first time in many years, testimony to their confidence in the future of the Ethiopian economy”.
Ethiopia’s beverage sector has been growing in the past few years. The country’s double digit growth is also noteworthy for the increase in the demand for quality and readily available bottled water.
According to The Reporter, the factory is located at Sululta, which is part of the Oromia Special Zone Surrounding Finfinne, and has an annual rainfall of 1,250 millimeter.
According to The Reporter, ensuring access to sustainable water sources was the prerequisite for the transaction. “The partners of the JV have agreed to implement all measures necessary to ensure sustainable management of the water resources, in close cooperation with the local community, and with the same goal of creating shared value which guides all engagements within the Nestlé Group,” a statement sent to The Reporter read.
Speaking on his part Guy Bani, Nestlé Waters Regional Manager, said ““Our investment is part of the group’s commitment to the continuous growth of Africa and the sustainable use of resources. In Ethiopia, we will be engaging strongly with local stakeholders to contribute to socio-economic development. The focus will be put on improving drinking water access in neighboring communities, ensuring the sustainability of the water shared with the community, and developing income generating activities for youth groups.”
Abyssinia started supplying bottled water in 2004 and it currently holds more than 10 percent of the Ethiopian market, The Reporter explained. Nestle Water, on the other hand, is a division of the Nestlé Group and the leading global bottled water company. It has 52 bottled water brands and employs more than 33,000 people all over the world.
Source: The Reporter
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