Sector News

Coca-Cola plans sale of India bottling units for US$1bn

March 1, 2016
Food & Drink

The Coca-Cola Company is looking to sell its capital-intensive bottling operations in India at a valuation of US$1 billion as it focuses on brands, marketing and strategy, reports a business daily.

“Coca-Cola plans to start talks with large industrial houses for the potential divestment. The deal could take 12-18 months to close,” says the financial newspaper.

Hindustan Coca-Cola Beverages (HCCB) has 24 plants. It is in charge of bottling and distribution of Coca-Cola Company’s beverages in India, along with 13 franchisee bottlers who together have 24 additinal plants.

HCCB bottles 65% of Coca-Cola Company’s total volume in India.

Coca-Cola India supplies concentrate to all bottlers and is responsible for marketing, strategy and R&D.

The proposed sale of the bottling business marks a reversal of the strategy by Coca-Cola Company from what it followed at the time of its return to India in 1993 after a 17-year absence, reports the paper.

The acquisition of Parle’s beverage business gave Coca-Cola Company access to bottling, distribution infrastructure and a 60% share of the market. It also inherited 55 Parle bottlers as franchisees.

Coca-Cola then launched a process to buy out the franchisee bottlers, with some of them resisting the company’s moves, reports the paper.

Source: India Infoline

Related News

February 28, 2021

Tetra Pak introduces certified recycled PE polymers for food contact applications

Food & Drink

Two Tetra Pak production sites in Europe are now certified to produce packaging with recycled polyethylene (rPE) polymers, according to the Roundtable on Sustainable Biomaterials (RSB) Chain of Custody mass balance attribution method.

February 28, 2021

Cargill names Brian Sikes as chief operating officer

Food & Drink

Cargill has appointed Brian Sikes as its chief operating officer (COO), a role in which he will also serve as a management director on the company’s board.

February 28, 2021

Heineken and Coca-Cola System realign Brazil distribution partnership

Food & Drink

Heineken has reached an agreement with The Coca-Cola Company and the Coca-Cola System in Brazil to redesign their long-standing distribution partnership in the country.

Send this to a friend