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Coca-Cola will be hit with a $1 billion impairment charge as part of a major restructuring of its bottling operations in Africa.

Coca-Cola reported the charge in a regulatory filing yesterday (23 October 2025), following news that it had agreed to sell a significant portion of its stake in Coca-Cola Beverages Africa (CCBA). This marked another step in the company's long-term strategy to streamline ownership and focus on brand-building rather than bottling.

The impairment charge will be incurred due to the significant negative net foreign currency translation adjustments that will be reclassified to income upon sale, the beverage giant said in the SEC filing, requiring it to reduce the carrying amount of the assets held for sale.

The transaction sees Coca-Cola HBC acquire a 75% stake in CCBA for $2.6 billion, purchasing Coca-Cola’s 42% share and the remaining holdings from Gutsche Family Investments. The deal values CCBA at roughly $3.4 billion and is expected to close by late 2026.

Once completed, Coca-Cola HBC will become the second-largest Coca-Cola bottler worldwide by volume, trailing only Coca-Cola FEMSA. The acquisition will also give HBC a significant foothold across 14 African markets, where rising disposable incomes and a youthful consumer base are fuelling rapid beverage demand growth.