The Coca-Cola Namibian Bottling Company (CCNBC) has halted two of its production lines, including the one handling its locally canned products, which will now have to be imported – a move that may soon result in higher consumer costs.
This past Friday the company announced the closure of the two production lines, as a result of the ongoing water crisis, warning clients this may lead to “disruptions in supply” countrywide.
The company said “can products will be imported from South Africa”.
In the short-term, prices will not be adjusted.
However, Coca-Cola also cautioned that this could change, due to the effect of higher import charges on landed costs.
According to the notice, the production line closures are temporary and effective immediately.
The company is working on “alternatives to ensure sustained full supply, and this includes investigating secondary sources of water supply, to minimise to the extent possible, disruptions in supply, a newspaper notice by the company said.
Managing Director Frik Oosthuizen said in the notice that the 30% water savings requirement by the City of Windhoek “is what is required for normal production”, at the plant currently operating in Windhoek.
The production line “producing returnable glass products (1 000ml) in Windhoek” is affected, as well as the one producing “all can products locally”.
According to the notice, the returnable glass products production line will “only be available in the northern part of the country”, at the company’s Oshakati plant.
The notice further stated that clients should be aware of “sporadic shortages countrywide”, related to the supply of plastic products.
“Our plastic (PET) products are all produced in Windhoek and, due to the long distances, cannot be readily imported”, the notice stated.
Coca-Cola is one of the top water consumers in Windhoek, alongside several other major production companies that are facing challenges due to increased water restrictions.
The company notice did not indicate the impact on jobs by the production cut or on revenue.
The company could not be reached for further comment, despite several attempts.
JANA-MARI SMITH