Coca-Cola is Strengthening Its Bottling Operations in Africa.

Coca-Cola's Important Sale

Coca-Cola Company and Gutsche Family Investments announced their decision to sell a 75% controlling interest in Coca-Cola Beverages Africa Pty. Ltd. to Coca-Cola HBC AG.

CCBA is the largest bottling company for Coca-Cola in Africa and operates in 14 countries across the continent. CCBA represents approximately 40% of Coca-Cola products sold across Africa.

Transaction Values and Expectations

Coca-Cola will sell 41.52% of its 66.52% stake to Coca-Cola HBC, resulting in a total deal valued at 3.4 billion USD.

The transaction is expected to be completed by the end of 2026. Additionally, Coca-Cola HBC has the option to acquire the remaining 25% of CCBA held by Coca-Cola within six years.

Refranchising Process and Future Goals

The sale of Coca-Cola's stake in CCBA is a significant step in the company's process of restructuring its bottling operations. In 2024, bottling investments are expected to represent only 13% of net consolidated revenues, down from 52% in 2015. After this transaction, bottling investments are expected to account for 5% of consolidated revenues.

The Continuity of the Gutsche Family

After the sale, the Gutsche family will continue to be involved in both the Coca-Cola system and operations in Africa. The family has contributed to the development of the Coca-Cola business for over 80 years.

Coca-Cola HBC's Growth Strategy

Following the completion of the sale, Coca-Cola HBC will represent two-thirds of the total Coca-Cola system volume in Africa and will cover more than 50% of the continent. The company, which has been operating in Africa for years, is determined to promote local consumption growth.

Next Steps and Investment Plans

The acquisition of CCBA by Coca-Cola HBC will be completed after obtaining the necessary regulatory approvals. Moreover, the company intends to have a secondary listing on the Johannesburg Stock Exchange.