Coca-Cola Bottlers Uzbekistan

Coca-Cola Bottlers Uzbekistan (Uzbek: Coca-Cola Ichimligi Uzbekiston Ltd.) is a joint venture between the Uzbek state and the Coca-Cola Company established in 1993. The company is headquartered in Tashkent and has four production facilities: two in Tashkent, one in Namangan, and one in Urgench.[1] In 2019, the company controlled nearly half of Uzbekistan’s market for soft drinks and generated revenue of UZS 1.4 trillion.[2] The Uzbek state currently owns 57.1 percent of the joint venture, with the Coca-Cola Company owning the remainder.[3]

Coca-Cola Bottlers Uzbekistan Ltd.
Native name
Coca-Cola Ichimligi Uzbekiston Ltd.
Founded1993 (1993) in Tashkent, Uzbekistan
Revenue US$160 million (2019)
Owner

History

Coca-Cola Bottlers Uzbekistan began production in March 1994 with an initial production target of 2.2 million gallons a year.[4] The shareholders were Roz Trading Ltd., an entity controlled by Afghan-American businessman Mansur Maqsudi, the Coca-Cola Company (via The Coca-Cola Export Corporation), and Uzpishprom, an Uzbek state enterprise.[5] In May 1996, the company opened its second bottling plant in the Kirbay district on the outskirts of Tashkent.[6] In February 1997 a second plant was opened in Namangan in order to serve the populous Fergana Valley.[1] In June 1997, the company’s fourth plant opened in Urgench in the far west of Uzbekistan.[1]

In 2001, the Uzbek government launched an investigation into Roz Trading over alleged financial impropriety.[7] Soon after, Roz Trading’s shares in Coca-Cola Bottlers Uzbekistan were taken over by the Uzbek state. In June 2006, Maqsudi filed a claim against the Coca-Cola Company for allegedly conspiring with Uzbek government to strip Roz Trading of its majority share in the bottling company.[8]

Privatization Plan

In March 2019, Uzbek President Shavkat Mirziyoyev signed a decree aimed at improving the attractiveness of Uzbekistan for foreign investors.[9] This decree mandated the privatization of 64 of the country’s largest state-owned enterprises, including Coca-Cola Bottlers Uzbekistan.[10][11] In March 2020, the Coca-Cola Company announced it would invest $31 million in its Uzbek joint venture to upgrade the bottling plants.[12] In December 2020, the Uzbek government announced that it had retained Rothschild & Co to manage the sale of a portion of the state the state’s shares in the joint venture.[13]

References
  1. ""Coca – Cola Ichimligi Uzbekiston, LTD"". ccbu.uz (in Russian). Retrieved 2020-12-28.
  2. "Uzbekistan to sell state shares in local Coca-Cola bottler". Eurasian Investor. Retrieved 2020-12-28.
  3. Pacitti, Steven. "Strategic investor sought for Coca-Cola Bottlers Uzbekistan | Plastics in Packaging". Retrieved 2020-12-28.
  4. Reuters (1994-03-29). "COMPANY NEWS; COCA-COLA VENTURE IN UZBEKISTAN STARTS PRODUCTION (Published 1994)". The New York Times. ISSN 0362-4331. Retrieved 2020-12-28.
  5. UzDaily. "Uzbekistan plans to attract consultant for Coca Cola privatization". UzDaily.uz (in Russian). Retrieved 2020-12-28.
  6. ""Coca – Cola Ichimligi Uzbekiston, LTD"". ccbu.uz (in Russian). Retrieved 2020-12-28.
  7. Street Journal, Steve LeVine and Betsy McKayStaff Reporters of The Wall (2001-08-24). "Three Executives of Coca-Cola Bottler Leave Uzbekistan Amid Investigations". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-12-28.
  8. "Subscribe to read | Financial Times". www.ft.com. Retrieved 2020-12-28. Cite uses generic title (help)
  9. "О МЕРАХ ПО ДАЛЬНЕЙШЕМУ СОВЕРШЕНСТВОВАНИЮ МЕХАНИЗМОВ ПРИВЛЕЧЕНИЯ ПРЯМЫХ ИНОСТРАННЫХ ИНВЕСТИЦИЙ В ЭКОНОМИКУ РЕСПУБЛИКИ". April 29, 2019.
  10. "Uzbekistan – Uzbekistan privatizes certain State companies | Investment Policy Monitor | UNCTAD Investment Policy Hub". investmentpolicy.unctad.org. Retrieved 2020-12-28.
  11. "MACRO ADVISORY: Uzbekistan Terraforming: Privatization is the next stage". www.intellinews.com. 2019-05-20. Retrieved 2020-12-28.
  12. "Coca-Cola Company to invest US$ 31 million in JV in Uzbekistan". tashkenttimes.uz. Retrieved 2020-12-28.
  13. Reuters Staff (2020-12-18). "Uzbekistan invites bids for its stake in joint venture with Coca-Cola". Reuters. Retrieved 2020-12-28.
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