Coca-Cola HBC $2.6 Billion Bet On Africa

The Post On Sunday

In a move set to reshape Africa’s fast-growing consumer goods market, Swiss-based Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) has struck a landmark $2.6 billion deal to acquire a controlling 75% stake in Coca-Cola Beverages Africa (CCBA), a transaction that will make it the world’s second-largest Coca-Cola bottling partner by beverage volume.

The deal, announced on Tuesday, brings together two of the most powerful forces in the Coca-Cola ecosystem and signals renewed confidence in Africa’s expanding consumer market, one defined by a young population, rapid urbanization, and rising disposable incomes.

Coca-Cola HBC’s acquisition, which includes the U.S.-based Coca-Cola Company’s 42% stake and the Gutsche Family Investments’ entire holding, values CCBA at around $3.4 billion, according to company filings.

Once completed, the deal will extend Coca-Cola HBC’s footprint to 14 new African markets, covering more than half of the continent’s population and representing two-thirds of Africa’s total Coca-Cola beverage volume, including flagship brands such as Fanta, Sprite, and Monster Energy.

For a continent where beverage consumption continues to rise alongside economic growth, the transaction positions Coca-Cola HBC as one of Africa’s dominant players in the food and drink industry, and a direct competitor to Mexico’s Coca-Cola FEMSA, the world’s largest Coca-Cola bottler.

“This acquisition is about growth,” said Coca-Cola HBC CEO Zoran Bogdanovic during a media call. “Africa represents one of the most dynamic consumer markets in the world, and we are committed to investing, innovating, and growing with it.”

Founded in 2014, CCBA operates in countries including South Africa, Kenya, Ethiopia, Uganda, Tanzania, Mozambique, and Namibia, among others. The acquisition marks one of the biggest deals in Africa’s consumer goods sector, according to investment bank Rothschild, Coca-Cola’s sole adviser on the transaction.

Bogdanovic said the deal underlines Coca-Cola HBC’s commitment to long-term investment in emerging markets, especially in regions where population growth, a youthful demographic, and digital connectivity are driving consumption trends.

The company, already listed in London and Athens, announced plans to seek a secondary listing on the Johannesburg Stock Exchange (JSE) to strengthen its African identity and visibility among regional investors. It also retains an option to purchase Coca-Cola’s remaining 25% stake in CCBA within six years, signaling an appetite for full control.

For The Coca-Cola Company, headquartered in Atlanta, the sale marks another step in its broader strategy of divesting bottling operations to focus on brand ownership, product innovation, and marketing.

“Coca-Cola HBC is a strong and valued bottler that will help usher in the next chapter of growth for CCBA,” said Coca-Cola Chief Operating Officer Henrique Braun.

The Atlanta-based beverage giant, which owns about 23% of Coca-Cola HBC, maintains a strategic stake to ensure continuity and brand alignment while freeing itself from the capital-intensive bottling business.

Africa has long been a pillar in Coca-Cola HBC’s growth strategy. The company’s emerging markets portfolio, which includes African, Eastern European, and Balkan countries, leads both its sales and volume growth, though none of its regions accounts for more than 20% individually.

In recent years, the bottler has faced headwinds from rising global costs, currency volatility, and supply chain disruptions linked to U.S. tariff uncertainties. The African expansion offers both a growth hedge and a revenue replacement for losses sustained after its 2022 exit from Russia, one of its most profitable markets at the time.

Despite the strategic promise of the acquisition, Coca-Cola HBC’s London-listed shares initially fell by 4.7% following the announcement before trimming losses to 1.2% by midmorning. Analysts attributed the reaction to the company’s third-quarter results, which showed a 5% rise in organic revenue, slightly below market expectations.

Still, market analysts say the long-term growth potential of the African acquisition far outweighs short-term investor caution.

As the deal positions Coca-Cola HBC to serve a consumer base of more than 700 million Africans, the acquisition underscores Africa’s rising importance in global trade and investment.

Across the continent, youthful populations are driving the growth of consumer markets. Increased connectivity, improved logistics infrastructure, and the African Continental Free Trade Area (AfCFTA) are also enabling companies to scale operations more efficiently across borders.

The expansion also reflects a broader trend, global corporations increasingly viewing Africa not as an aid-dependent region but as a strategic growth frontier.