Moha Beverage Industries has announced that it has reached an agreement with PepsiCo to retain its partnership and production of PepsiCo brands in Ethiopia. The announcement was made at a press briefing held at the Sheraton Addis Hotel in Addis Ababa on January 31, 2023.
The company management said that five of Moha's eight production plants will start operations immediately, with the remaining plants to follow soon.
MoHA Beverage Industries (MoHA) underwent a restructuring process authorized by its owner, Sheikh Mohammed Al Amoudi. As part of this change, MoHA became the 45th subsidiary of MIDROC, a conglomerate owned by Al Amoudi.
Moha has produced and distributed PepsiCo products exclusively in Ethiopia for almost three decades through its eight plants across the country. However, production had ceased around four months ago.
"We have suffered huge losses in the last two years but we'll recover soon following the resumption of production," said Akalewold Admasu, deputy CEO of MIDROC.
In the interim period, some Pepsi products were found for sale in markets at prices higher than the factory rate. Moha executives believe this was likely surplus stock held by traders who had purchased before the factory closure.
Moha recently underwent structural changes and brought on new management led by MIDROC Group CEO Jemal Ahmed. The new team's proposals to PepsiCo outlined plans to resume operations, regain market share, protect jobs, and welcome back PepsiCo brands.
"We'll soon introduce new products as well," said Akalewold.
Paul Andersen, CEO of PepsiCo's Africa business unit, was quoted in a press release issued by MIDROC saying “We are pleased to reach agreement ensuring our beloved brands again reach valued Ethiopian consumers.”
During the Sheraton press briefing, MIDROC management said restructuring is near completion. "Considering stiff market competition, we need skilled staff and restructuring is necessary," added Akalework.
Moha has plants in Dessie, Bure, Gondar, Hawassa, Mekelle and three more in Addis Ababa.
The renewed partnership will see the iconic soft drink brands return to shelves across Ethiopia soon. It also secures jobs and opportunities within Moha and its supply chain after a difficult period.