Moha Softdrink Industries S.C., Ethiopia's leading beverage bottler, is in a precarious situation after seeing its founding General Manager retiring and facing a looming closure due to a web of problems that undermined its production.

The company, which has been bottling popular soft drinks under a license from PepsiCo for the past 27 years, is facing a critical moment as it approaches the end of its franchise and distribution arrangement with the global beverage giant. The change comes at a time of economic challenges, including a tight foreign currency squeeze that forced Moha to cease operations across its eight plants, depleting its inventory, after dispatching the last of 52,000 cases.

The cascade of events leading up to this moment was marked by the retirement of Getachew Birbo, at 75. His departure was set into motion by a letter from billionaire owner Mohammed Hussien Al-Amoudi (Sheikh), who holds the majority stake in the company. A transitional committee headed by Amanuel Muhe, previously an assistant to the Managing Director of Al-Sam Business Group, has been appointed to steer Moha through these turbulent times.

Amanuel's appointment, recommended by Midroc CEO Jemal Ahmed, is seen as a crucial step in re-asserting management stability and renegotiating the contract with PepsiCo. The international company has yet to accept the nomination of a candidate, however.

Amanuel has expressed confidence in the company's resilience.

"Moha will not close down," he told Fortune.

Amanuel is upbeat about the company's prospects, pledging that operations will resume "shortly" and an agreement with PepsiCo is nearing finalisation.

"Everything will be sorted out," he said.

His reassurances come as a relief to the trade unions representing workers across Moha's plants, who were informed of the impending operational resumption during a meeting on Saturday, December 9, 2023.

Moha Industries' journey began in 1996 investing over the years a 119 million dollars, after Pepsi Cola company was privatised to Al-Amoudi for 16 million dollars. Moha was incorporated subsequently, with shares listed under Al-Amoudi, his spouse Sophia and three of his brothers, Seid, Hassan and Abdela.

Under Getachew's management, the company saw substantial growth, expanding from its initial four plants to additional locations in Meqelle, Dessie, Gonder, Bure, Hawassa, and three more in Addis Ababa. The expansion not only increased its labour force nearly fourfold from the initial 900 but also boosted annual revenues to 4.6 billion Br, despite the forex crunch worsened since 2021.

The company's product portfolio is led by the fan favourite Mirinda, which holds a 65pc market share, followed by Pepsi at 20pc and 7-Up at seven percent.

Looking forward to taking a much-needed rest after long years of service, Getachew reflected on his tenure with a mix of pride and regret. He recalled a downward spiral beginning with the closure of four of Moha's plants in the northern parts of the country following the outbreak of war three years ago.

"Nothing was the same after that year," he told Fortune.

His biggest regret is not securing the annual 38 million dollars in foreign currency needed to import the Pepsi concentrate, which is essential for maintaining production.

"We needed at least two million dollars a month to maintain production, while 3.5 million dollars would be required to function at an optimal level," Getachew told Fortune. "Production should never have come to a halt."