Coca-Cola HBC Expands Africa Presence with $2.6 Billion Acquisition
Lagos – Swiss-based bottler Coca-Cola HBC has announced a landmark deal to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion, strengthening its presence across the African continent and creating the world’s second-largest Coca-Cola bottling partner by volume.
The acquisition includes the U.S.-based Coca-Cola Company’s 42% stake in CCBA as well as the Gutsche Family Investments’ full ownership, valuing the African bottler at $3.4 billion.
This strategic move significantly expands Coca-Cola HBC’s footprint, adding 14 new markets and positioning the company for long-term growth in Africa’s dynamic beverage sector.
Strategic Expansion in Africa
The transaction solidifies Coca-Cola HBC’s position as a leading bottler in Africa, tapping into growing demand among younger consumers in emerging markets.
CCBA, founded in 2014, currently accounts for approximately 40% of Coca-Cola volume sold across Africa, including popular brands such as Fanta, Sprite, and Monster Energy.
By integrating CCBA’s operations, Coca-Cola HBC enhances its scale, distribution network, and operational efficiency, allowing it to serve millions of consumers more effectively across the continent.
Henrique Braun, Chief Operating Officer of Coca-Cola, emphasized that Coca-Cola HBC is a “strong and valued bottler” and will play a key role in the next chapter of growth for CCBA.
The acquisition also includes an option for Coca-Cola HBC to purchase the remaining 25% stake in CCBA within the next six years, ensuring flexibility for future expansion.
Market Growth and Listings
Coca-Cola HBC, which is already listed on the London and Athens stock exchanges, plans to pursue a secondary listing on the Johannesburg Stock Exchange, highlighting its commitment to local markets and investor engagement in Africa.
The company also announced it would cancel its share buyback program, reflecting a focus on strategic growth initiatives and capital allocation toward expanding operations.
The deal positions Coca-Cola HBC just behind Coca-Cola FEMSA in terms of bottling volumes, making it one of the largest Coca-Cola partners globally.
Analysts view the acquisition as a positive move to strengthen the company’s long-term growth trajectory while leveraging the rising consumption of beverages across Africa.
Financial Performance and Outlook
Despite a modest decline in shares following the announcement, Coca-Cola HBC reported a 5% rise in third-quarter organic revenue, demonstrating resilience amid global economic fluctuations.
While this growth is lower than the 13.9% recorded in the previous year, the company maintains confidence in achieving the top end of its 6% to 8% organic revenue growth forecast for 2025, supported by pricing adjustments and expanding operations in high-demand markets.
The African expansion also allows Coca-Cola HBC to capitalize on favorable demographic trends, increasing urbanization, and a growing middle class.
These factors are expected to drive sustained consumer demand for beverages, enhancing revenue potential and market share for the combined group.
Positive Implications for Consumers and Communities
Beyond financial growth, the acquisition is expected to benefit local communities by strengthening supply chains, creating employment opportunities, and promoting sustainable practices across operations.
Coca-Cola HBC has a strong commitment to sustainability, including initiatives for water stewardship, energy efficiency, and community engagement. Integrating CCBA operations allows the company to further implement these initiatives on a larger scale across African markets.
By consolidating operations under Coca-Cola HBC, the company is well-positioned to capture long-term growth opportunities in Africa while maintaining operational excellence and brand leadership.
The acquisition demonstrates confidence in Africa’s growth potential and the company’s ability to adapt to dynamic markets while maintaining high standards of product quality and customer service.
In summary, Coca-Cola HBC’s $2.6 billion acquisition of CCBA represents a transformative step in the company’s expansion strategy.
With enhanced scale, access to 14 new markets, and the option to acquire the remaining stake, the deal positions Coca-Cola HBC as a major global player in the Coca-Cola ecosystem, delivering value for shareholders, consumers, and communities across Africa.
