Design & Manufacturing News South Africa

Bottling king drinks his fill in life and work

Eastern Cape entrepreneur Philipp Gutsche has always had an unquenchable thirst for success.
Bottling king drinks his fill in life and work

Gutsche, 74, has covered a lot of ground since he took over as managing director of the South African Bottling Company (Sabco) from his father in 1975.

For the first 13 months of production in 1941, 15,151 cases of Coca-Cola were sold.

Today, Coca-Cola Sabco sells about 330m cases of the fizzy soft drinks a year.

The comparison shows the company's phenomenal growth. The original company was renamed after numerous acquisitions, and Gutsche is now its non-executive chairman.

Having bottled the world's most successful brand for 70 years, the company is one of the largest bottlers in the global Coca-Cola network.

It has about 10,000 employees with 21 bottling plants in nine countries. Gutsche Family Investments is the holding company of Coca-Cola Sabco.

The visionary, second-generation entrepreneur was honoured for his success at the Eastern Cape's Black Management Forum (BMF) award ceremony on Friday (16 November).

He received the Lifetime Achievement award for taking Coca-Cola Sabco from strength to strength.

The Herald interviewed Gutsche at his headquarters in Port Elizabeth a few days before the ceremony.

Casually dressed in a light blue shirt - with no tie - and black pants, it takes the Selborne College matriculant a few minutes to relax.

He begins by talking how Shaka Zulu, the Duke of Wellington and Cecil John Rhodes inspired him while studying at the University of Cape Town where he obtained his BComm degree in 1960.

"It was their level of discipline that fascinated me and how that led to their successes," he says.

But how did he build his empire in a few decades?

Referring to Coca-Cola Sabco as his "big baby", Gutsche said his success stemmed from networking, being competitive and having tight control over expenses.

"When I joined, it was a small business, but I had great faith in the product."

To survive in a turbulent South African market many years ago, the company had to be a low-cost producer, he said.

"I focused on growing the business not only organically but through acquisitions."

The strategy has worked like a charm.

He also admits to stepping on a few toes to achieve his dream.

"I upset people now and again but it comes with the territory," he said.

After achieving market dominance in the franchise territories in South Africa, Gutsche turned to Africa and beyond.

"I have been fortunate in taking the opportunities given to me. And it has helped the business grow."

Plants are now located in Namibia, Mozambique, Tanzania, Ethiopia, Uganda, Kenya, Sri Lanka and Nepal.

He said service delivery was imperative in his line of business.

"Product quality has been the major focus all these years. It is crucial everything is delivered and runs on time."

It seems likely this is why Gutsche has a problem with Nelson Mandela Bay's poor service delivery track record.

"The inability to come to decisions, and boycotting meetings, is the problem. It seriously affects service delivery, which is its core function. We need a commitment to a society of integrity and honour," he said.

Gutsche said his most defining moment was when he joined Sabco in 1962.

"It was a real challenge to me. I was 23 years old and recommended by the Coca-Cola company. I was young but it was a huge boost to my confidence."

He is quick to point out that he would not be as successful without a string of mistakes behind his name. "During the apartheid sanction years I tried to expand into America without success."

Gutsche said throughout his business career he had only a 51% success rate. "Mistakes are important. They build character."

His favourite leisure activities are yachting, tennis and spending time on his property in the Sabi Sand Reserve.

But the man behind Coca-Cola Sabco also has a type of rags-to-riches story to tell.

"I have also always been a strong disciplinarian and my upbringing taught me how to be frugal."

Giving an example, he describes how Bostik saved his shoes from falling apart time and again when he was growing up.

"My parents lived from hand to mouth. There was no abundance of funds like my children and grandchildren enjoy today."

Asked if he felt he deserved the BMF award, he said: "I don't know. I prefer other people getting awards but I am accepting this on behalf of the company and the people who work for it."

Gutsche said he had faith in South Africa and Nelson Mandela Bay. "There are opportunities. I believe in being positive about the future."

Gutsche said he had drunk his fill of success over the years and was now slowing down to concentrate on his children and grandchildren.

"That is what's important right now," he said.

Source: Herald via I-Net Bridge

Source: I-Net Bridge

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