Coca-Cola Continues Bottling-Network Overhaul With $2.6 Billion Africa Stake Sale — Update

By Najat Kantouar

Coca-Cola and a South African associate reached a deal to sell a majority stake in Coke's largest bottler in Africa to a Switzerland-based company for $2.6 billion, a move that continues the soda giant's push to refranchise its bottling business.

The Fanta and Sprite owner has sought to transfer company-owned or controlled bottling operations to local and independent bottlers over the past decade in a bid to cut costs and boost profit.

Under the deal, Coca-Cola and long-standing partner Gutsche Family Investments agreed to sell a 75% stake in Coca-Cola Beverages Africa to London-listed Coca-Cola HBC in a transaction that values the African bottler as a whole at $3.4 billion, the companies said Tuesday. Coca-Cola is selling 41.52% out of its 66.52% stake in CCBA, while the family holding is offloading its entire 33.48% stake, the companies said.

Coca-Cola said the sale of its CCBA stake marks another step in a push to refranchise its bottling network, which reduced its exposure to the business to 13% of the group's net revenue in 2024 from 52% in 2015. Once the Africa deal is closed, Coca-Cola estimates bottling investments will make up about 5% of its net revenue, it said.

Activist investor Elliott Investment Management has pushed Coke rival PepsiCo to follow that strategy and refranchise its bottling network, The Wall Street Journal reported last month.

The Africa sale builds on Coca-Cola's recent deal to sell a 40% stake in India bottler Hindustan Coca-Cola Beverages to Jubilant Bhartia Group.

For Coca-Cola HBC, the acquisition aims to strengthen its footprint in Africa, it said. The deal is set to turn Coca-Cola HBC--which has operations in Europe and Africa--into the second biggest bottler in the Coca-Cola system by volume after Coca-Cola Femsa, the companies said.

Coca-Cola HBC said it plans to pursue a secondary listing on the Johannesburg Stock Exchange, adding to its existing listings in London and Athens.

Coca-Cola and its Switzerland-based bottling partner also entered into separate option agreement for a potential acquisition of the remaining 25% stake in CCBA within six years after the main deal is closed, they said.

CCBA currently operates in 14 countries and represents 40% of all Coca-Cola product volume sold across Africa, the companies said.

Following the completion of the transaction, Coca-Cola HBC will represent two-thirds of Africa's total Coca-Cola system volume and cover more than 50% of the continent's population, the company said.

The transaction will be partly funded by issuing shares to Gutsche Family Investments representing a 5.47% stake, it added. This means the family, which has been associated with Coca-Cola since 1940, will remain involved in both the Coca-Cola system and Africa through its stake in Coca-Cola HBC, the companies said.

Write to Najat Kantouar at najat.kantouar@wsj.com

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October 21, 2025 07:47 ET (11:47 GMT)