There are growing reports about the possible closure of production plants of Coca-Cola Beverages South Africa (CCBSA) in Bloemfontein and East London, a move that could place up to 680 jobs at risk. The closures form part of a restructuring process aimed at addressing financial pressures. Responding to the speculation, CCBSA confirmed that while no decision has been finalised, discussions are underway.
“In response to evolving industry dynamics, CCBSA intends to make adjustments to its organisation that, if implemented, may result in some roles being impacted and may unfortunately result in job losses. Consultations are underway, and no final decision has been made,” the company said.
Local economist Dr Eugene Buthelezi warned that such closures would have far-reaching effects. He noted that job losses would immediately reduce household incomes and local spending. Without another major employer stepping in, the region could face structural unemployment, skills mismatches, and slower growth. “The loss of a well-known brand could further weaken Bloemfontein’s industrial base and reduce its attractiveness as a production hub. This will likely worsen unemployment in the Free State, which was already at 38.5% in the second quarter of 2025,” he said. Buthelezi also cautioned of a ripple effect on suppliers and service providers. Businesses providing raw materials such as sugar, packaging, and cleaning chemicals, as well as transport, logistics, fuel, and vehicle services, would all lose a major client. Professional services such as accounting and legal firms could also feel the impact.
Meanwhile, the Food and Allied Workers Union (Fawu) has voiced strong opposition. Communications officer Dominique Martin argued that the reasons provided are not convincing, suggesting the company is pursuing outsourcing at the expense of permanent jobs and collective bargaining power. “We are not satisfied with these reasons. It indicates an agenda to outsource, destroying decent jobs,” she said. Martin added that Fawu will continue engaging the company to test the credibility of its rationale and propose alternatives aimed at minimising job losses.
