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Coca-Cola, Gutsche Family to Sell Stake in CCBA, Refranchising on Track

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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.

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