Sector News

Coca-Cola bottlers to merge in $27bn deal

August 7, 2015
Food & Drink
Three of Europe’s main bottlers of Coca-Cola products are to combine in a $27 billion deal to simplify manufacturing at the world’s largest drink maker as it is seeks to cut costs at a time when consumers are shifting away from its famous sodas.
 
Coca-Cola Enterprises, the US-based bottler with exclusive Coke licences in several western Europe countries, will merge with its Iberian and German counterparts in the latest consolidation of the Coca-Cola Company’s supply chain.
 
The three-way deal, announced yesterday, is one of the biggest consumer deals ever in Europe and will create a company with revenues exceeding $12.5 billion to be headquartered in London.
 
The deal is structured as a tax inversion, allowing CCE to reduce its exposure to US taxes and creating a new UK-domiciled company to be called Coca-Cola European Partners. It will trade in Amsterdam, New York and Madrid.
 
The merger comes as Coca-Cola is confronting a decline in fizzy-drinks sales, especially in developed markets. In response, the drinks group is looking to cut costs to boost profitability. Initiatives have included reducing the size of beverage bottles, generating more profit per ounce, as customers fall out of love with excess.
 
In an internal memo to staff, James Quincey, president of Coca-Cola in Europe, said that the deal would improve the company’s ability to respond more swiftly to changing consumer trends. 
 
Source: Financial Times 

comments closed

Related News

September 25, 2022

Coca-Cola names new president of global ventures

Food & Drink

The Coca-Cola Co. has promoted Evguenia (Jeny) Stoichkova to president of global ventures, effective Jan. 1, 2023. Ms. Stoichkova joined Coca-Cola Bulgaria in 2004 and was most recently the president of the company’s Eurasia & Middle East division, a role she has held since 2021.

September 25, 2022

Perfect Day allies with Onego Bio to speed-up launch of animal-free eggs

Food & Drink

US-based Perfect Day, is partnering with Onego Bio, which specializes in creating animal-free eggs, aiming to accelerate the timeline to bring the eggs to the market. The business, with the use of its technology, plans to commercialize animal-free ovalbumin, the most abundant egg white protein extracted through precision fermentation.

September 25, 2022

EU fails on food waste: Report reveals bloc discards more than it imports

Food & Drink

Food waste costs the EU €143 billion per year (US$141.7 billion), with a report by Feedback EU raising the alarm of how it’s vital to reduce waste from farm to fork 50% by 2030 and the only way this will be achieved is by enforcing a mandatory directive forcing the food industry to do better and retailers to pay a tax of food waste.