The Coca-Cola Company has announced that it will maintain its majority stake in African bottler Coca-Cola Beverages Africa for the foreseeable future.
With the change, Coca-Cola will begin presenting the financial statements of CCBA within its results from continuing operations in the second quarter of 2019. Coca-Cola previously announced its intention to refranchise CCBA, which is the largest bottler of Coca-Cola beverages in Africa, serving 12 countries.
The company has had discussions with a number of potential partners about the divestment of its controlling stake. Last year, the beverage giant reported a 10% decline in net revenues as it was hurt by the refranchising of its bottling operations.
“Coca-Cola Beverages Africa is a very important part of the Coca-Cola system, and we see great opportunities to create even more value,” said Coca-Cola President and Chief Operating Officer Brian Smith. “While we remain committed to the refranchising process, we believe it’s in the best interests of all involved for Coca-Cola to continue to hold and operate CCBA.”
CCBA was formed in 2016 through the combination of the African nonalcoholic ready-to-drink bottling interests of SABMiller, The Coca-Cola Company and Gutsche Family Investments. AB InBev later acquired SABMiller and reached an agreement to transition AB InBev’s 54.5% equity stake in CCBA to Coca-Cola.
© FoodBev Media Ltd 2019