Coca-Cola’s African subsidiary eyes more consolidation

JOHANNESBURG — Coca-Cola Beverages Africa (CCBA), the biggest bottling unit of Coca-Cola in the continent, is eyeing further consolidation of the parent’s bottling operations there, its chief executive said on Tuesday, as it prepares to go public.

CCBA is the Atlanta-based company’s eighth biggest bottling company with operations in 14 countries in the continent. Its spate of acquisitions since 2017 has brought bottling operations in Zambia, Botswana, Eswatini, Lesotho, South Africa and other smaller bottlers under its fold to form a $3.2 billion behemoth by 2021.

“At CCBA, we firmly believe (in) one bottler, one country because that is the only way we can win in Africa,” said CCBA CEO Jacques Vermeulen, during a virtual presentation to investors.

The company is also open to brand acquisitions and partnerships with other beverage makers in the continent, he added, but stressed that consolidation is second only to organic growth in its priorities.

Coca-Cola had said in April it was planning to list CCBA over the next 18 months, depending on market conditions. The primary listing would be in Amsterdam with a secondary listing on the Johannesburg Stock Exchange. —