Massive Coca-Cola Deal: What it Means for South Africa
Johannesburg – In a landmark deal announced today, The Coca-Cola Company and Gutsche Family Investments (GFI) have agreed to sell a 75% controlling interest in Coca-Cola Beverages Africa (CCBA) to Coca-Cola HBC AG. This significant move will reshape the bottling landscape across the continent, including South Africa.
CCBA is the largest Coca-Cola bottler in Africa, operating in 14 countries and accounting for approximately 40% of all Coca-Cola product volume sold across the continent. Coca-Cola HBC, a major player in its own right, already operates in 29 countries across Europe and Africa, including key markets like Nigeria and Egypt.
The Details of the Deal
Coca-Cola will sell 41.52% of its 66.52% stake in CCBA to Coca-Cola HBC. Additionally, Coca-Cola HBC will acquire GFI's 33.48% stake in CCBA. The entire transaction values 100% of CCBA at a staggering US$3.4 billion.
The deal is expected to be finalised by the end of 2026. Furthermore, Coca-Cola and Coca-Cola HBC have a separate agreement that gives Coca-Cola HBC the option to acquire the remaining 25% of CCBA owned by Coca-Cola within six years of the closing date.
Refranchising Strategy
This sale is a key part of Coca-Cola's ongoing strategy to refranchise company-owned or controlled bottling operations. The company aims to reduce its bottling investments as a percentage of consolidated net revenue, projecting a drop from 13% in 2024 to approximately 5% after this transaction.
Earlier in 2025, Coca-Cola also sold a 40% stake in Hindustan Coca-Cola Beverages Pvt. Ltd. in India to Jubilant Bhartia Group, demonstrating its commitment to this refranchising initiative. Coca-Cola retains a 60% ownership of the Indian bottler.
What it means for South Africa
While the full impact remains to be seen, this deal promises significant changes for the Coca-Cola beverage market in South Africa. Coca-Cola HBC's expertise and resources could lead to increased efficiency, innovation, and potentially new product offerings. South African consumers should keep an eye on how this major shift will affect their favorite beverages in the coming years.