Coca-Cola Company, one of the world’s largest bottlers of drinks, recently said it has shelved plans to re-franchise its Africa bottling business, Coca-Cola Beverages Africa (CCBA), and would instead keep its majority stake in the business unit for the time being.
The company revealed in a statement that it had deliberations with a number of potential partners over the issue, and Coca-Cola HBC, alongside rival company, Coca-Cola European Partners were seen as potential buyers for the unit.
The company said in a statement: “While we remain committed to the refranchising process, we believe it’s in the best interests of all involved for Coca-Cola to continue to hold and operate CCBA.”
Why Would Coca-Cola Company Plan To Refranchise The African Bottling Business?
Sources reported that the US beverage giant had sought to refranchise the business unit as part of its global plan to divest its manufacturing and distribution assets to concentrate on core beverage business and also boost margins.
It was reported by the News Agency of Nigeria (NAN) that the shares of Coca-Cola HBC were down by 7.4% in Monday’s trading. However, the beverage giant in April, reported a solid start to 2019 with sustained drive that included gaining global value share.
The Q1 2019 reports revealed that net revenues grew 5% to $8 billion within the period, with positive operations across all groups, in addition to a benefit from timing.
Coke in 2016 acquired a majority stake in Coca-Cola Beverage Africa, the largest soft drink bottler on the continent, with operations in a dozen markets including South Africa, Kenya, Uganda, Nigeria and Tanzania.
Plans To Reclassify The African Business Unit In It Operations.
The company also stated that it would reclassify its financial statements from the second quarter in 2019 to include Coca-Cola Beverage Africa as part of its continuing operations.
About Coca-Cola Company.
Nigerian Bottling Company is one of the world’s major bottlers of drinks, serving approximately 180 million people in Nigeria, by making and distributing a unique range of quality brands and bringing passion to marketplace.
According to Interbrand.com 2018 top 100 global rankings, Coca-Cola was the fifth most valuable brand in the world in 2018, offering over 500 brands to people in over 200 countries of the world.