As reported on FoodBev.com on 31 July, The Coca-Cola Company, Coca-Cola Enterprises (CCE), Coca-Cola Iberian Partners, and Coca-Cola Erfrischungsgetränke AG (CCEAG) have jointly announced a transaction creating Coke’s largest bottler.
The new business, to be named Coca-Cola European Partners, will serve 13 countries in Western Europe and have revenues of about $12.6bn.
The planned ownership is 48% CCE share owners, 34% owners of Coca-Cola Iberian Partners (currently family-owned) and 18% Coca-Cola Company.
The move advances The Coca-Cola Company’s goal of consolidating bottling operations around the world and reducing expenses, as it is forecast to deliver annual cost savings of around $375m after three years.
“The creation of a larger, unified Coca-Cola bottling partner in Western Europe represents an important step in our global system’s evolution,” said Muhtar Kent, chairman and CEO of The Coca-Cola Company. “We continue to adapt our business model to innovate, invest and grow along with the changing demands of the marketplace. With the strong leadership that will be assembled from across the three organisations, Coca-Cola European Partners will be well-positioned to deliver better and more effective service to customers throughout Western Europe and drive profitable growth across multiple beverage categories.”
Sol Daurella, executive chairwoman of Coca-Cola Iberian Partners, added: “In 2013, we combined our family-owned Iberian Coca-Cola bottlers with over 60 years of history to better serve our customers and consumers. Our Iberian shareowners see today’s announcement as an important step to further develop and optimise our offerings in Western Europe. As the single-largest shareowner in this new business we will play a strong strategic role in Coca-Cola European Partners, while continuing to be close to our country, business, local consumers and customers. Combining our unique expertise in the on-premise channels, targeted marketing experience and operational excellence with the skills of CCE and CCEAG, together we will drive growth in Western Europe.”
“The creation of Coca-Cola European Partners will build on each bottler’s capabilities to create more efficient operations in their respective markets across Western Europe,” said John Brock, chairman and CEO of Coca-Cola Enterprises. “We look forward to bringing together our world-class supply chain and sales team with the distinct strengths offered by CCIP and CCEAG to capture additional growth opportunities in each market. This transaction offers clear synergies, along with the scale to better serve the needs of our customers and consumers in Western Europe, to become an even stronger partner to The Coca-Cola Company and create increased value for CCE’s shareowners.”
© FoodBev Media Ltd 2021
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