The Coca-Cola Company and Gutsche Family Investments (GFI) have agreed to transfer a 75% ownership stake in Coca-Cola Beverages Africa (CCBA) to Coca-Cola HBC AG, an independent Coca-Cola Bottler based in Switzerland.
Coca-Cola Company will sell 41.52% of its stake in CCBA and retain 25%, while GFI will sell its 33.48% ownership in CCBA to Coca-Cola HBC. This transaction is set to value 100% of CCBA at USD 3.4 billion in equity value. The initiative aligns with the ongoing sale of company-owned bottling operations. Coca-Cola Company’s main focus is on making the beverage concentrate and marketing the brand. The selling of its stake helps the company to become a leaner, higher-margin business that earns from royalties and concentrate sales rather than managing heavy manufacturing operations.
Coca-Cola Company is Shedding Bottling Business
In 2015, bottling investments made up 52% of Coca-Cola’s consolidated revenue. By 2024, the percentage of bottling investment in consolidated revenue had dropped to 13%, and following the acquisition, bottling investments are expected to account for approximately 5% of consolidated revenue.
Currently, Coca-Cola HBC is one of the largest Coca-Cola Bottlers in the world, operating in 29 countries across Europe and Africa, serving over 750 million consumers. Following the acquisition, the London Stock Exchange-listed company will add 14 African markets including Kenya, South Africa, Ethiopia, Tanzania, and Uganda to its portfolio. This move will make Coca-Cola HBC the largest Coca-Cola Bottler by territory coverage representing two-thirds of Coca-Cola system volume and covering over 50% of the continent’s population. Coca-Cola HBC also reached an agreement with the Coca-Cola Company to acquire the remaining 25% of CCBA by 2032.
Coca-Cola Company Stake Sale Impact
The acquisition gives Coca-Cola HBC direct access to growth opportunities in Africa as one of the fastest growing consumer markets globally, characterised with a young population and strong demand for beverages. Additionally, the addition of the African market reduces the company’s reliance on its core European markets hence reducing risk.
“With almost 75 years of experience in Nigeria and with our successful acquisition of Coca Cola’s bottling business in Egypt in 2022, we see huge growth opportunities in Africa. It has a sizable and growing consumer base and significant potential to increase per capita consumption,” said Zoran Bogdanovic, CEO of Coca-Cola HBC.
The acquisition is set to be completed by December 2026, following approval by relevant authorities. Coca-Cola HBC will also pursue listing at the Johannesburg Stock Exchange, a move that will strengthen Africa’s position in Global Capital Markets. Currently, the beverage company is listed on the London Securities Exchange and on the Athens Exchange.
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