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12 Dec, 2019 | Posted By: staff reporter
Zvakaoma Schweppes Stops Manufacturing Mazoe Orange Crush

Schweppes Zimbabwe Limited has stopped producing Mazoe Orange Crush after Coca-Cola Company cut off critical ingredients in making the product over a $10 million debt, according to South Africa’s Business Times newspaper.According to the newspaper, Schweppes Zimbabwe, which manufactures and distributes Mazoe Orange Crush under licence from Coca-Cola, has not been manufacturing the product in the past three weeks.

The newspaper quoted Charles Msipa, Schweppes managing director, saying “there is an amount due and need to be paid so that the release of the concentrate can be done.”He told Business Times that “it’s a forex issue which is causing frustration. Part of the resolution is that we are working with local banks and the Reserve Bank of Zimbabwe because that amount due, though it is less than US$10m, is legacy debt accrued over three years. So, this is part of the blocked funds.”

Central bank governor John Mangudya was not available for comment as he was not responding to calls on his mobile phone.Schweppes recently introduced a tomato business in Norton, west of the capital, Harare. It exports some of its products to Zambia, Namibia, Botswana, South Africa and Mozambique.
Schweppes Zimbabwe has not been manufacturing Mazoe Orange Crush for the past three weeks. It is understood that the US$10m debt emanated from concentrates for cordials supplied by the world’s leading soft drink manufacturer. Beverages manufacturer, Schweppes Zimbabwe Limited, has stopped producing its flagship cordial drink, Mazoe Orange Crush, after The Coca-Cola Company which supplies critical ingredients of the product, cut off supplies due to an estimated US$10m debt.

Mazoe Orange Crush is manufactured and distributed by Schweppes Zimbabwe under licence from Coca-Cola whose other products bottled by Schweppes are Minute Maid juices, Bonaqua still water, and Schweppes still water.Schweppes Zimbabwe has not been manufacturing Mazoe Orange Crush for the past three weeks. It is understood that the US$10m debt emanated from concentrates for cordials supplied by the world’s leading soft drink manufacturer. This has seen Coca-Cola stopping supplies until the debt is settled.

This could only be the beginning as international suppliers, who are owed about US$1.2bn, begin to press for the settlement of legacy debts. Several local companies have been struggling to continue getting supplies of critical raw materials on credit from offshore suppliers due to the non-payment of legacy debts, also known as blocked funds.

Off shore suppliers have threatened to cut supplies to Zimbabwean firms, and the majority of them are now demanding pre-payments until the legacy debts have been settled. Charles Msipa, Schweppes managing director, yesterday confirmed the debt owed to Coca-Cola.

“Yes, there is an amount due and need to be paid so that the release of the concentrate can be done,” Msipa said. “It’s a forex issue which is causing frustration. Part of the resolution is that we are working with local banks and the Reserve Bank of Zimbabwe because that amount due, though it is less than US$10m, is legacy debt accrued over three years. So, this is part of the blocked funds.


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staff reporter
staff reporter
Staff Reporter for Zimbolivenews.com & Zimbolivetv.vom



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