Coca-Cola to Record $1 Billion Charge as It Sells Majority Stake in African Bottling Unit

By Naija247news Business Desk

Atlanta/Johannesburg, Oct. 24, 2025 —

Global beverage giant The Coca-Cola Company is set to record an impairment charge of about $1 billion in the fourth quarter of 2025, following plans to sell part of its ownership in Coca-Cola Beverages Africa (CCBA) — a move that signals a new phase in the company’s African restructuring strategy.

According to a regulatory filing on Thursday, the charge stems from Coca-Cola’s decision to divest a significant portion of its stake in the continent’s largest bottling operation. Shares of the Atlanta-based firm dipped by roughly 1% in late trading following the announcement.

Swiss Bottler Coca-Cola HBC Expands African Footprint

The development follows a deal announced earlier this week by Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) — a Swiss-based bottler — to acquire a 75% stake in its African counterpart for $2.6 billion.

Under the agreement, Coca-Cola HBC will buy Coca-Cola Company’s 42% stake in CCBA and acquire the entire shareholding of Gutsche Family Investments, valuing the African bottler at approximately $3.4 billion. The transaction is expected to close by late 2026, subject to regulatory approvals across multiple African jurisdictions.

Once completed, Coca-Cola HBC will become the second-largest Coca-Cola bottler worldwide by volume, after Mexico’s Coca-Cola FEMSA, while deepening its presence in 14 African markets, including Nigeria, Kenya, Ethiopia, Tanzania, and South Africa.

Strategic Shift Amid Africa’s Growing Consumer Base

The acquisition represents a strategic bet on Africa’s fast-growing beverage market, driven by a young population, rapid urbanization, and evolving consumer lifestyles. Analysts say the deal could boost Coca-Cola HBC’s long-term growth, while helping the company hedge against cost pressures, currency volatility, and potential U.S. tariff concerns.

Africa currently accounts for some of Coca-Cola’s highest volume growth globally, with Nigeria and South Africa serving as key markets for soft drinks, fruit beverages, and bottled water segments.

Coca-Cola HBC has also announced plans for a secondary listing on the Johannesburg Stock Exchange (JSE) to strengthen its regional identity and investor base. The company retains an option to acquire Coca-Cola’s remaining 25% stake in CCBA within six years of closing the deal — effectively paving the way for full control of the African operation by the early 2030s.

Coca-Cola’s Global Performance Remains Solid

Despite the impending charge, Coca-Cola’s core business remains robust. The company reported strong third-quarter results earlier this week, buoyed by rising global demand for Coca-Cola Zero Sugar, Fairlife dairy products, and international soda sales.

The beverage giant’s African divestiture forms part of a global streamlining effort aimed at optimizing ownership structures and empowering local partners to accelerate regional growth.

Analyst Viewpoint:

Market observers say the move could reshape Africa’s beverage landscape, enabling Coca-Cola HBC to leverage economies of scale while allowing the U.S. parent company to focus on brand development, innovation, and sustainability goals rather than operational bottling.

Reporting by Naija247news Business Desk | Adapted from Reuters report by Anuja Bharat Mistry (Bengaluru)

Editing by Maju Samuel | Additional Analysis by Naija247news Africa Bureau

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Reporting by Peter Anene, Business Editor in Lagos, Nigeria.