On Tuesday, Coca-Cola Company (NYSE:KO) and Gutsche Family Investments disclosed a deal to sell a 75% controlling stake in Coca-Cola Beverages Africa (CCBA) to Coca-Cola HBC AG for around $3.4 billion.
Under the deal, The Coca-Cola Company will sell 41.52% of its 66.52% ownership in CCBA, while Coca-Cola HBC will also purchase the 33.48% stake held by Gutsche Family Investments.
Notably, CCBA operates in 14 African countries and represents around 40% of all Coca-Cola product sales in the region.
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The sale is expected to be completed by the end of 2026.
Additionally, Coca-Cola and Coca-Cola HBC have entered into an option agreement that allows Coca-Cola HBC to acquire the remaining 25% interest in CCBA still held by Coca-Cola within six years after the deal closes.
Management Commentary
Henrique Braun, executive vice president and chief operating officer of Coca-Cola, said, “Coca-Cola HBC has demonstrated a strong track record of growing our system across Africa, having strong market share growth in Egypt and realizing strong volume and share growth in Nigeria over the past several years.”
“We are pleased with Coca-Cola HBC’s continued and aligned investment in the Coca-Cola system and in taking another significant step forward in the refranchising of company-owned bottling operations.”
Strategy Behind Sale
Coca-Cola’s divestment in CCBA marks another major move in its ongoing strategy to refranchise company-owned and operated bottling businesses.
As of 2024, bottling investments accounted for 13% of Coca-Cola’s consolidated net revenue, a sharp decline from 52% in 2015.
Once the CCBA transaction is finalized, the company expects that figure to fall further to about 5%.
In July 2025, Coca-Cola advanced its refranchising efforts in India by selling a 40% stake in Hindustan Coca-Cola Beverages Pvt. Ltd. to Jubilant Bhartia Group, while retaining a 60% ownership interest in the bottler.
Coca-Cola plans to release quarterly results on Tuesday, October 21.
Investors can gain exposure to the stock via iShares U.S. Consumer Staples ETF (NYSE:IYK) and Global X Funds Global X PureCap MSCI Consumer Staples ETF (NYSE:GXPS).
Price Action: KO shares were trading higher by 0.22% to $68.60 premarket at last check Tuesday.
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