Coca-Cola to Sell African Bottling Unit Amid Drop in Sales

March 31, 2021
Coca-Cola

By Ahmed Rahma

A leading beverage company, Coca-Cola, is considering selling its majority stake in its African bottling unit, according to Bloomberg.

Coca-Cola holds 66.5 per cent stake in Coca-Cola Beverages Africa and the firm intends to divest its holdings through a sale or an initial public offering.

According to Bloomberg, the plans are still at the discussion stage and the valuation could change depending on buyer interest. The deal could value the entire unit at approximately $6 billion.

The Coca-Cola Beverages Africa business serves 13 countries, including Kenya, Ethiopia and Ghana, information on its website said.

It accounts for about 40 per cent of the Atlanta-based company’s drinks sold on the continent. Coca-Cola concluded a deal earlier this year to increase local shareholding in its South Africa bottling unit.

In 2017, Coca-Cola initially tried to sell its stake in the unit, drawing interest from Coca-Cola Hellenic Bottling Company and Heineken NV.

It had just bought the stake in 2016, the largest bottling unit in Africa from Anheuser-Busch InBev (BUD) for $3.15 billion.

As most businesses were affected by the pandemic, a year of global Covid-19 lockdowns at restaurants, amusement parks and stadiums disrupted Coca-Cola’s global businesses.

Organic sales fell 3 per cent in fourth quarter amid ongoing challenges from the pandemic. Still, the drop was less severe than analyst forecasts and Coca-Cola has predicted high-single digit revenue growth for 2021 as more of the world’s population gets vaccinated, the report stated.

Rahma Ahmed

Ahmed Rahma is a journalist with great interest in arts and craft. She is also a foodie who loves new ideas. She loves to travel and would love to visit other African countries someday. She is a sucker for historical movies and afrobeat.

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