Franchising can be an effective route for companies to grow their businesses into various African countries. Using this strategy, Soda King, a South African beverage brand has managed to expand beyond the country’s borders.
In addition to a couple of franchisees in South Africa, the beverage company now has a presence in Namibia, Swaziland, Zambia, Nigeria, Madagascar and Somalia, and there are ongoing negotiations for new franchises in Ghana, Cameroon, Sierra Leone, Liberia, Ethiopia and the DRC.
For an initial fee of about US$500,000 (depending on the size of the operation), franchisees receive all the equipment needed to start a bottling plant, the rights to produce Soda King’s trademarked products, and initial stock and labels.
Soda King generates revenue from the franchise fee, a margin on the bottling plant, and the continuous sales of concentrates and labels to franchisees.
In this eye-opening case study, Soda King shares its experience and insights about selecting the right partners, supply chain challenges and adapting to local tastes and realities.
Read the full article at: How We Made It In Africa
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