Clover seeks to consolidate footprint in Africa

The project, which is a joint venture with a local partner, New Age Beverage Co, forms part of broader strategy by Clover to expand its beverage operations.

Clover deputy CE Manie Roode says Nigeria possesses huge growth potential for the company. He says the company could also expand its dairy operations there, given the positive market response the company has had thus far.

Roode adds that Clover is also investigating several projects elsewhere on the African continent, which he would not disclose at this stage.

"We already have exposure in Africa through the Shoprite Group, which is fairly widespread on the continent," he said.

Locally though, Clover says it will continue its focus on efficiencies and cost savings, given higher fuel and electricity costs.

Project Cielo Blu will see the relocation of the long life products plant from Midrand to Port Elizabeth and Pinetown, the incorporation of the central Johannesburg beverages factory into the Midrand facility and the expansion of several other production and distribution sites.

These improvements will take between 2-3 years to complete after which margin improvements are anticipated.

The project seeks to rectify historical structural inefficiencies in Clover's business operations, thereby allowing necessary investment in critical distribution bottlenecks.

Roode adds that imports are currently not a real threat due to higher international dairy prices.