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In a move aimed at streamlining operations and enhancing growth prospects, The Coca-Cola Company and Gutsche Family Investments have announced the sale of a 75% controlling interest in Coca-Cola Beverages Africa to Coca-Cola HBC.

This transaction, valued at approximately $3.4 billion, marks a significant milestone in Coca-Cola's ongoing refranchising strategy and underscores the growing importance of the African market in the global beverage landscape.

CCBA stands as the largest Coca-Cola bottler on the African continent, operating across 14 countries and accounting for about 40% of Coca-Cola's product volume sold in Africa.

Coca-Cola HBC, a key bottling partner with operations in 29 countries, will acquire 41.52% of Coca-Cola's existing 66.52% stake in CCBA, along with GFI's 33.48% share.

This divestiture aligns with Coca-Cola’s broader refranchising efforts, which have seen the company reduce its bottling investments from 52% of consolidated net revenue in 2015 to just 5% following this latest transaction.

The move is indicative of Coca-Cola's strategy to focus on its core competencies in marketing and brand management while leveraging the operational expertise of strategic bottling partners like Coca-Cola HBC.

Henrique Braun, Coca-Cola's executive vice president and chief operating officer, said: “Coca-Cola HBC is a strong and valued bottler that will help usher in the next chapter of growth for CCBA”.

Braun also highlighted the bottler's impressive track record in expanding market share in key African territories such as Egypt and Nigeria.

The Gutsche family, through GFI, will maintain its involvement in the Coca-Cola ecosystem, having played a role in developing the Coca-Cola brand across Southern and Eastern Africa for over 80 years.

Philipp Hugo Gutsche, GFI chairman, added: “Coca-Cola HBC is the ideal partner to carry the CCBA business forward and realise their shared vision for the Coca-Cola system on the continent”.

Upon completion of the acquisition, Coca-Cola HBC will control two-thirds of the total Coca-Cola system volume in Africa, reaching over 50% of the continent's population.

Zoran Bogdanovic, CEO of Coca-Cola HBC, noted: “With almost 75 years of experience in Nigeria and our successful acquisition of Coca-Cola’s bottling business in Egypt in 2022, we see huge growth opportunities in Africa”.

Coca-Cola HBC plans to use its extensive experience and bespoke capabilities to further enhance CCBA’s operations, drive sustainable growth, and increase per capita consumption of Coca-Cola products in the region.

The transaction is expected to close by the end of 2026, pending regulatory approvals. As part of its commitment to the African market, Coca-Cola HBC will pursue a secondary listing on the Johannesburg Stock Exchange, reinforcing its dedication to local operations.

The financial advisory roles in this transaction were filled by Rothschild & Co for Coca-Cola, while Goldman Sachs and UBS acted as financial advisers for Coca-Cola HBC.