Philippines: CCEP to Become the World's Largest Coca-Cola Bottler

Coca-Cola Europacific Partners (CCEP) has announced to acquire Coca-Cola Beverages Philippines, Inc. (CCBPI) together with its partner Aboitiz Equity Ventures (AEV) a Philippine holding company based in Metro Manila. The goal of this joint acquisition is to become the world's largest Coca-Cola bottler in terms of revenue and volumes.

CCBPI currently belongsto The Coca-Cola Company that wants to divest its bottling operations. CCEP and AEV have entered into a non-binding Letter of Intent with Coca-Cola, to acquire 100% ownership in CCBPI.

The proposed acquisition would build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) on 10 May 2021, when Coca-Cola European Partners' bought the Australian bottling company Coca-Cola Amatil (CCA) thus forming CCEP, one of the leading consumer goods companies in the world operating in 29 countries with over 33.000 employees. (, 26.10.2020).

The new deal valued at USD 1.8 billion on a debt free cash free basis will be a cash purchase, with CCEP and AEV sharing ownership in a 60:40 structure. While the agreement is not yet finalized, the partners are in advanced discussions for the potential transaction.

As CCEP would be the majority owner it is expected to consolidate CCBPI as of the acquisition date and establish a non-controlling interest representing AEV’s minority interest. The business would be governed by a board of five members, three appointed by CCEP and two by AEV. CCEP would also appoint the CEO.

The proposed acquisition is expected to close around the end of FY23 but is still subject to a number of conditions, including satisfactory completion of due diligence (which is well underway), the parties concluding definitive agreements and the receipt of regulatory approvals. 

Damian Gammell, CCEP's CEO, expressed excitement about the opportunity to acquire Coca-Cola Beverages Philippines, stating that it is a well-established and profitable business with promising growth prospects.

CCEP, which currently bottles and sells Coca-Cola products in Western Europe, Australia, and New Zealand, expects to achieve its earlier target of returning to the top end of its net debt to adjusted core profit range in 2024 instead of the originally anticipated 2023 timeframe.

In May, CCEP revealed plans to invest at least EUR 700 million this year to enhance customer service and work towards sustainability goals. The investment includes four new can lines in Australia, GB and Norway, new Monster lines and additional Monster capacity in France and Spain, a multi-year investment in returnable glass bottles in France, and new or improved automated storage and retrieval systems in Netherlands and GB.

In July, CCEP revealed  also plans for a further investment in 2023  of over EUR 100 million in Germany, to accompany the recent launch of a 40 million euro refillable glass bottling line in Lüneburg and the recommissioning of an existing refillable PET line in Bad Neuenahr, both of which are scheduled to go into operation in 2024.

The company has also made progress in reducing the use of virgin plastic in its packaging.

During the first half of the financial year, CCEP reported EUR 8.98 billion in revenue, an 8.5% increase compared to the same period last year. Operating profit also saw a significant rise, reaching EUR 1.17 billion, representing a 21.0% increase.

The company attributed its strong performance to solid volume growth in developed markets and effective revenue and margin growth management, along with a well-executed pricing and promotional strategy that contributed to notable revenue gains per unit case.

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