We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Coca-Cola, Gutsche Family to Sell Stake in CCBA, Refranchising on Track
Read MoreHide Full Article
Key Takeaways
Coca-Cola and Gutsche have agreed to sell a 75% stake in CCBA.
KO and Coca-Cola HBC will have a separate option agreement to get the remaining 25%.
Post acquisition, Coca-Cola HBC will account for two-thirds of Africa's entire Coca-Cola system volume.
The Coca-Cola Company (KO - Free Report) is evolving into a total beverage company with a resilient, all-weather strategy that integrates marketing, innovation and revenue growth management. The company is optimistic about its robust portfolio, supported by its system's unique capabilities and meaningful innovations.
In the recent update, Coca-Cola and Gutsche Family Investments agreed to sell a controlling stake of 75% in Coca-Cola Beverages Africa Pty. Ltd. (“CCBA”) to Coca-Cola HBC AG. The company will sell 41.52% of its 66.52% interest in CCBA to Coca-Cola HBC, while Coca-Cola HBC will acquire 33.48% of CCBA that is held by Gutsche Family Investments.
Hence, the transaction has a total value of 100% of CCBA at an equity value of US$3.4 billion. The transactions are likely to conclude by 2026-end. Post the sale, the Gutsche family will maintain its involvement in the Coca-Cola system and Africa with its ownership stake in Coca-Cola HBC.
We note that Coca-Cola and Coca-Cola HBC will have a separate option agreement for Coca-Cola HBC to get the remaining 25% of CCBA owned by Coca-Cola within six years from closing. The sale of KO’s interest in CCBA has been a major move in the refranchising of company-owned or controlled bottling operations. This July, the company has achieved another milestone in the refranchising process in India with the divestment of a 40% ownership stake in Hindustan Coca-Cola Beverages Pvt. Ltd. to Jubilant Bhartia Group. The company continues to own 60% of the Indian bottler.
Following the completion of the acquisition, Coca-Cola HBC will account for two-thirds of Africa’s entire Coca-Cola system volume, covering more than half of the continent’s population, underscoring its long-term commitment to growth in Africa. The acquisition provides Coca-Cola HBC with a platform to share top practices, deploy its leading capabilities and further invest in CCBA to aid sustainable growth.
Coca-Cola’s Other Notable Efforts
KO’s digital initiatives position it well for growth ahead. The company is accelerating investments to build strong digital capabilities, hence evolving into an organization that efficiently executes marketing, commercial, sales and distribution, both offline and online. It is strengthening consumer connections and piloting numerous digital-enabled initiatives through fulfillment methods to capture online demand for at-home consumption.
The company’s refreshed marketing model blends digital, live and in-store touchpoints to build stronger, more personalized consumer connections. Coca-Cola also deepened engagement through experiential marketing, such as music partnerships and gaming integrations, enhancing brand visibility across diverse audiences. Such efforts helped offset volume softness in certain markets and reinforced pricing power across the portfolio. By pairing targeted innovation with impactful, culturally relevant marketing, Coca-Cola is strengthening brand loyalty and positioning itself for sustained growth amid a challenging macro environment.
Image Source: Zacks Investment Research
This Zacks Rank #4 (Sell) company’s shares have gained 2.1% in the past three months against the industry’s 1.3% drop.
The Zacks Consensus Estimate for United Natural Foods' current financial-year sales and earnings indicates growth of 2.5% and 167.6%, respectively, from the prior-year levels. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Celsius Holdings, Inc. (CELH - Free Report) , which specializes in nutritional functional foods, beverages and dietary supplements, starches and nutrition ingredients, currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Celsius’ current financial-year earnings is expected to rise 60% from the corresponding year-ago reported figure. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Post Holdings (POST - Free Report) , which is a consumer-packaged goods holding company, currently carries a Zacks Rank #2 (Buy). POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.
The Zacks Consensus Estimate for Post Holdings’ current financial-year earnings indicates growth of 12.6% from the year-ago number.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Coca-Cola, Gutsche Family to Sell Stake in CCBA, Refranchising on Track
Key Takeaways
The Coca-Cola Company (KO - Free Report) is evolving into a total beverage company with a resilient, all-weather strategy that integrates marketing, innovation and revenue growth management. The company is optimistic about its robust portfolio, supported by its system's unique capabilities and meaningful innovations.
In the recent update, Coca-Cola and Gutsche Family Investments agreed to sell a controlling stake of 75% in Coca-Cola Beverages Africa Pty. Ltd. (“CCBA”) to Coca-Cola HBC AG. The company will sell 41.52% of its 66.52% interest in CCBA to Coca-Cola HBC, while Coca-Cola HBC will acquire 33.48% of CCBA that is held by Gutsche Family Investments.
Hence, the transaction has a total value of 100% of CCBA at an equity value of US$3.4 billion. The transactions are likely to conclude by 2026-end. Post the sale, the Gutsche family will maintain its involvement in the Coca-Cola system and Africa with its ownership stake in Coca-Cola HBC.
We note that Coca-Cola and Coca-Cola HBC will have a separate option agreement for Coca-Cola HBC to get the remaining 25% of CCBA owned by Coca-Cola within six years from closing. The sale of KO’s interest in CCBA has been a major move in the refranchising of company-owned or controlled bottling operations. This July, the company has achieved another milestone in the refranchising process in India with the divestment of a 40% ownership stake in Hindustan Coca-Cola Beverages Pvt. Ltd. to Jubilant Bhartia Group. The company continues to own 60% of the Indian bottler.
Following the completion of the acquisition, Coca-Cola HBC will account for two-thirds of Africa’s entire Coca-Cola system volume, covering more than half of the continent’s population, underscoring its long-term commitment to growth in Africa. The acquisition provides Coca-Cola HBC with a platform to share top practices, deploy its leading capabilities and further invest in CCBA to aid sustainable growth.
Coca-Cola’s Other Notable Efforts
KO’s digital initiatives position it well for growth ahead. The company is accelerating investments to build strong digital capabilities, hence evolving into an organization that efficiently executes marketing, commercial, sales and distribution, both offline and online. It is strengthening consumer connections and piloting numerous digital-enabled initiatives through fulfillment methods to capture online demand for at-home consumption.
The company’s refreshed marketing model blends digital, live and in-store touchpoints to build stronger, more personalized consumer connections. Coca-Cola also deepened engagement through experiential marketing, such as music partnerships and gaming integrations, enhancing brand visibility across diverse audiences. Such efforts helped offset volume softness in certain markets and reinforced pricing power across the portfolio. By pairing targeted innovation with impactful, culturally relevant marketing, Coca-Cola is strengthening brand loyalty and positioning itself for sustained growth amid a challenging macro environment.
Image Source: Zacks Investment Research
This Zacks Rank #4 (Sell) company’s shares have gained 2.1% in the past three months against the industry’s 1.3% drop.
Stocks to Consider in the Consumer Staples Space
United Natural Foods (UNFI - Free Report) is a key distributor of natural, organic and specialty food and non-food products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods' current financial-year sales and earnings indicates growth of 2.5% and 167.6%, respectively, from the prior-year levels. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Celsius Holdings, Inc. (CELH - Free Report) , which specializes in nutritional functional foods, beverages and dietary supplements, starches and nutrition ingredients, currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Celsius’ current financial-year earnings is expected to rise 60% from the corresponding year-ago reported figure. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Post Holdings (POST - Free Report) , which is a consumer-packaged goods holding company, currently carries a Zacks Rank #2 (Buy). POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.
The Zacks Consensus Estimate for Post Holdings’ current financial-year earnings indicates growth of 12.6% from the year-ago number.