Coca-Cola HBC AG is set to reshape Africa’s beverage landscape through one of its most ambitious acquisition strategies Coca-Cola has ever pursued. The company announced it will acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion (R45 billion), establishing itself as the second-largest Coca-Cola bottling partner globally by volume.
Expanding the Coca-Cola Distribution Network
Founded in 1951 as the Nigerian Bottling Company and now headquartered in Switzerland, Coca-Cola HBC operates across 29 countries on three continents. This latest move will add 14 new African markets to its portfolio — strengthening the Coca-Cola distribution network and giving it access to more than half of Africa’s population.
The acquisition will be made from The Coca-Cola Company and Gutsche Family Investments, with an option to purchase the remaining shares within six years. This step is part of Coca-Cola’s broader acquisition process explanation, as the firm moves away from direct bottling operations, having recently sold its Indian bottling stake as well.
Completion of the transaction is expected by the end of next year.
Background on Coca-Cola Beverages Africa (CCBA)
CCBA was created in 2015 through a merger involving The Coca-Cola Company, SABMiller, and Gutsche Family Investments (GFI). It brought together multiple bottling operations across Southern and Eastern Africa, officially launching in July 2016 after regulatory approval in South Africa.
Later, in 2016, when Anheuser-Busch InBev merged with SABMiller, Coca-Cola Global opted to acquire AB InBev’s stake in CCBA. That transition was finalized in October 2017. Currently, Coca-Cola owns 66.5%, while GFI holds 33.5% of CCBA.
In April 2021, plans were announced to list CCBA as a publicly traded company, showcasing the brand’s long-term African investment vision. As part of this latest agreement, Coca-Cola HBC also plans a secondary listing on the Johannesburg Stock Exchange (JSE) to reinforce its dedication to South Africa and the continent.
Possible Job Cuts Amid Restructuring
The acquisition news follows reports that Coca-Cola Beverages South Africa (CCBSA) may cut up to 680 jobs and close some plants. According to the Food and Allied Workers Union (FAWU), retrenchment notices have already been received.
The company cited financial constraints as the main reason, with potential plant closures in Bloemfontein and East London as part of a restructuring plan. These possible job losses could affect about 9% of the workforce, primarily cleaning staff — vital contributors to beverage production operations.
Coca-Cola stated that as part of its ongoing acquisition process explanation and restructuring, operational “adjustments” may be necessary to stay competitive within the evolving industry landscape.
“In response to evolving industry dynamics, Coca-Cola Beverages South Africa intends to make adjustments to its organisation that, if implemented, may result in some roles being impacted and may, unfortunately, result in job losses,” the company said.
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This story was first reported by Bloomberg. Read the full article here.
