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1. Product Description: A soft drink is a type of man-made drink mainly composed of water (87%), sugar (12%), citric acid, color/essence, and sodium, benzonite. A bottling plant is a plant which mixes and bottles the above ingredients in a factory set-up. Non-alcoholic drinks or beverages like Coca Cola, Pepsi Cola, Fanta, etc are some examples of soft drinks.
2. Rationale: There are two old and small soft drinks bottling plants in the Amhara Region- in Dessie and in Gondar. These plants are not only old but they produce only Pepsi products which limits the choice of consumers. Besides, their production capacity is small and does not satisfy the demand for soft drinks in the Region. Considering the volume of soft drinks which the Region imports from Addis Ababa, it can be concluded that there is a need to establish one soft drinks bottling plant in Bahir Dar.
3. Market Potential: Annual production of soft drinks in the country is about 300 million bottles of which only 16 million bottles are the production of the Amhara Region. Annual consumption of soft drinks in the Region is about 80 million bottles which is 5 times the production capacity of the two soft drinks plants located in the Region. Regional deficit of soft drinks supply is compensated by supply from Addis Ababa. The current demand of soft drinks of the Region which is satisfied through imports can absorb the production of a new bottling plant and this will replace imports of the products from outside the Region.
LOCAL PRODUCTION OF SOFT DRINKS
Source: CSA’s Data on Manufacturing
* Estimates
4. Raw Material: The two major raw materials- water and sugar will be obtained from domestic sources while others such as essence will be imported. If possible the new plant should be affiliated with the two giant multi-nationals Coca Cola or Pepsi Cola.
5. Process and Technology: The main processing stages are washing of bottles, premixing with concentrate, mixing of the sugar and syrup, carbonation of the mix, filling, cap fitting, inspection and packing. Main machinery include, automatic bottle washer, automatic filling machine, blending and carbonating unit, syrup concentrate mixing unit, water treatment plant, carbondioxide supply equipment, cap fixing machine, etc.
6. Estimated Investment: For a plant which will produce about 2 million bottles of soft drinks, estimated investment will be:
n Buildings 200 m2 at Birr 1500/m2……..= Birr 300,000
n Plant and machinery …………………. = Birr 900,000
n Working Capital …………………. = Birr 300,000
Total……..……… 1,500,000
7. Benefits:- Self-sufficiency, saving of financial resources,
8. Location: Bahir Dar
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