Coca-Cola and Gutsche Family Investments have announced the sale of their majority stake in Coca-Cola Beverages Africa (CCBA) to Coca-Cola Hellenic (or Coca-Cola HBC). This transaction, which values CCBA at $3.4bn, will enable Coca-Cola HBC to strengthen its presence in the African continent, a rapidly expanding market.

The agreement provides for the sale of 75% of CCBA's shares to Coca-Cola HBC. This strategic move is part of Coca-Cola HBC's desire to establish a stronger presence in Africa, while continuing to be listed on the Johannesburg Stock Exchange. In addition, Coca-Cola HBC has committed to acquiring the remaining 25% of CCBA, still held by Coca-Cola, within six years of the transaction's completion.

A unique model for Coca-Cola

Contrary to popular belief, The Coca-Cola Company does not earn most of its revenue by selling its beverages directly, but by marketing syrup concentrates, which account for 56% of its sales, to a vast network of independent bottlers. These partners, organized around the Bottling Investments Group (BIG) created in 2006, are responsible for the production, packaging, and distribution of the final beverages. This model, which is both asset-light and highly profitable, allows Coca-Cola to focus on the brand and recipe, while delegating industrial execution. Among the main listed bottlers are Coca-Cola Femsa (Latin America), Coca-Cola Europacific Partners (Europe and Asia-Pacific), Coca-Cola Icecek (Turkey, Middle East, Central Asia), Coca-Cola Embonor (Chile, Bolivia), and Coca-Cola Hellenic (Europe and Africa). 

Focus on Coca-Cola Hellenic

Coca-Cola Hellenic Bottling Company (CCH), formed from the merger of Hellenic Bottling Company and Coca-Cola Beverages in 2000, is The Coca-Cola Company's third-largest bottler worldwide. Based in Switzerland and listed in London, it employs nearly 33,000 people and serves 740 million consumers in 29 countries. Its model is based on a highly diversified portfolio (97% non-alcoholic beverages and 3% spirits) spread across emerging, industrial and developing markets. Listed on the FTSE 100, it is owned by the Leventis family (23.4%) and The Coca-Cola Company (21.5%).