1.

1 HISTORY OF PEPSI COLA

Pepsi cola traces its origins to 1898 when Caleb Bradham, a pharmacist in New Bern, North Carolina, created
a curative drinks for dyspepsia called Pepsi Cola. Pepsi cola, later referred to simply as Pepsi was a mixture of
carbonated water, cane-sugar syrup, and an extract from topical kola nuts. To sell this product, Bradham
formed the Pepsi Cola Company in 1903.In addition to selling the drink at drugstore counters; Bradham bottled
Pepsi for sale on store shelves. At this time, bottling was a new innovation in food packaging However, due to
major increases in the price of sugar, Braham began to lose money on Pepsi and in 1923 he filed for bankruptcy.
The Craven Holding Company of craven country, North Carolina, purchased the company’s assets. In 1931
Charles G.Guth of the Loft Company in New York City purchased Pepsi-Cola from the holding company. Guth
had difficulty getting the business going again, but he increased sales by selling larger bottles at an unchanged
price. By 1933 Pepsi Cola was sold by 313 franchised U.S. dealers bottled in the united states, Cuba, and England
and Sold in 83 countries.

The consumption of soft drinks in their various forms has taken place for many centuries in order to meet the body’s
fundamental requirement for hydration. The most obvious source of hydration is water, but in earlier times the
consumption of water was very hazardous as it was frequently contaminated by micro-organisms. Outbreaks of cholera,
dysentery and other waterborne illnesses were common in many European cities prior to the twentieth century.
1.2 THE EMERGING OF PEPSI IN ETHIOPIA

Nefas Silk Pepsi Cola is the first Pepsi Cola plant in Ethiopia and was established in 1966 as a share company
with an initial capital of 1 million Birr. The capacity of the bottling line at that time was 20,000 bottles per hour
(bph). In 1986, the plant was renovated and expanded to a capacity of 50,000 bph with twin fillers. Total
renovation and expansion investment cost was Birr 6,647,944.00. Then T/Haimanot Pepsi Cola Plant was
established in 1961 as ‘Saba Tej’ Share Company, but nationalized in 1975 replacing the old line as stated
predicating Pepsi cola, Miranda and Team brands in January 1978. Gondar Pepsi Cola Plant, before
nationalization was owned by private individual produced wilk-fite water.

The Ethiopian beverage corporation made a new feasibility study on Pepsi cola product which got the blessing of
the government to erect the currently operating plant in 1986. Dessie Plant, Dessie soda industry was established
in 1952 by and individual owner. In1979. The plant discontinued other soda products and started producing
Pepsi Cola, Miranda brand and carbonated Tosa Water.
 1.3 BRIEF HISTORY FOR HAWASSA MILLENIUM PEPSI COLA PLANT

Hawassa Millennium Pepsi-Cola is one of the seven soft drink plants under MOHA, itself a member of MIDROC
ETHIOPIA GROUP. It is found in the south east of the Hawassa town from a distance of 10km. The official
establishment of the plant date is back to June 5, 1998 when the cornerstone was laid dawn at the current site.
The total compound area is 48km2 and was secured from south nation nationality and population lease bureau
for 99 years on lease basis.

Construction of this plant has taken some times and with the erection of a new state of art bottling line, the plant
was inaugurated on September 8/2007, marking the Ethiopian millennium 2000. The total project cost was 180
million birr.

1.3.1 REASONS AND/OR OBJECTIVES FOR ESTABLISHMENT OF THE COMPANY.

In a market survey conducted in May 2002, by a group of market expert in south nation nationality and
population region and southern Oromiya, it was found out that total Population of the region (SNNPR
&southern Oromia) where the survey was conducted was 19% of the total population of the Ethiopia, which was
approximately 12 million. Therefore it was believed that a new soft drink company must be built in order to
meet the need for this specific region. Then Hawassa Pepsi Cola Plant; a new Pepsi cola plant with a capacity of
36,000 BPH of 300 ml is constructed in Hawassa which can cover the demand of soft drinks of the southern
region.
MOHA (Mohammed Hussein Al-Amoudi) Soft drinks Industry S.C .was formed and registered under the
commercial code of Ethiopia on the 15th of May 1996. This company was formed after the acquisition of four
Pepsi cola plants located at Addis Ababa (Nefas Silk & T/Haimanot), Gondar and Dessie which were purchased
by Sheik Mohammed H. Al-Amoudi on the 18th of January 1996, through BID which was tendered by
Ethiopian privatization Agency. The hand-over of the factories was finalized on the 4th of April1996.

1.4 MAIN PRODUCTS OF THE COMPANY

The international PepsiCo Company have more than hundreds of types of food and beverage products. But there are
only few products of PepsiCo are producing in our country and these products became well known brands of Pepsi in
Ethiopia. These products are Pepsi, Miranda, 7UP, Miranda Tonic and Miranda Apple in their discovering order and
later cool water (mineral water) is added. Specifically when we come to Hawassa Millennium Pepsi cola plant, except
cool water all five brands are producing.

Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. It created and developed in 1893 and
introduced as Brad’s drink, it was renamed as Pepsi-cola on August 28, 1898, then to Pepsi in 1961, and in select areas
of North America, Pepsi-cola made with real sugar. Miranda is the second known brand of PepsiCo in Ethiopia, and it
is also being produced in HMPCP (Hawassa Millennium Pepsi Cola Plant). It is created in Spain in 1959, with global
distribution. The word Miranda means “admirable” or “wonderful” in Esperanto. Though Miranda is available in
different fruit varieties in world market, it is only available with only two flavors in Ethiopia including in HMPCP.
Orange and apple are the flavors and both flavors are producing in HMPCP. 7UP, the fourth brand producing under
HMPCP is a product of lemon-lime flavored, non-caffeinated soft drink. The rights to the brand are held by Dr Pepper
Snapple Group in the United States, and PepsiCo in the rest of the world. The U.S. version of the 7UP logo includes a
red cherry between the “7” and “UP”; this red cherry has been animated and used as a mascot for the brand as cool
spot.

Fig 1.3 Brands producing under HMPC

 1.5 ORGANAYZETIONAL STRUCTURE HAWASSA MILLENNIUM PEPSI COLA PLANT
GENERAL MANAGER

Human resource Finance Technique Production Market & Sales Food Safety & Procurement &
Manager Manager Manager Manager Manager Quality Manager Supply Manager

Cost & General account Procurement Store &supply

Budget Section Supervisor Supervisor

Supervisor

Electrical Maintenance Supervisor Quality Control

Mechanical Electrical Eng’r fleet supervisor Supervisor

Maintenance Supervisor up country sale supervisor Senior Chemist

Personnel Medical & Safety General Services Shift Chemist

Supervisor Supervisor Supervisor Production Supervisor Production Planning & Operators account dep’t
Follow up clerk
Personnel Officer Operators ware house supervisor market unit manager
 1.6 Vision of the company
To see Pepsi cola company the biggest soft drinks industry in the country and remain the
dominant in the market.

1.7 Mission of the company

The company is committed to marketing its products to all groups, treating all costumers with
respect, sensitivity and fairness, while providing some of the greatest products on the earth.

1.8 Future program of the company

Future program of the Hawassa millennium company is going to settle to expand the market
share and fully satisfy southern part and some part of the Oromia of our country

1.9 Standard achieved

MOHA Soft Drinks Industry S.C has adhered to Pepsi cola International standards and Good
Manufacturing practices (GMP).

1.10 Future plans

An average annual increase of 15% in sales volume and a corresponding profit growth is
anticipated.
MOHA (Mohammed Hussein Al-Amoud) soft drinks Industry S.C was formed and registered
under the commercial code of Ethiopia on 15th of May 1966. This company was formed after the
acquision of four Pepsi cola plants. The hand-over of the factories was finalized on the 4th of
April 1996.