Coca-Cola Europacific Partners announces $1.8bn joint acquisition of Coca-Cola Beverages Philippines, further building on Asia expansion

By Rachel Arthur

- Last updated on GMT


Related tags Coca-cola The coca-cola company carbonated soft drinks Soft drink Asia Asia pacific

Coca-Cola Europacific Partners (CCEP) and Aboitiz Equity Ventures (AEV) will jointly acquire Coca-Cola Beverages Philippines, the companies announced this morning.

The $1.8bn deal helps Coca-Cola Europacific Partners build on its expansion into Australia, Pacific and Indonesia: following the 2021 acquisition of bottler Coca-Cola Amatil.

The acquisition of Coca-Cola Philippines makes Coca-Cola Europacific Partners the world’s largest Coca-Cola bottler by both revenue and volume: with an increased focus in the growing Asian markets.

Asia growth

The Philippines is the second largest market in Southeast Asia: with a large and growing population (the country’s 115m people make it the 13th​​ largest globally with around 1.5% per annum population growth).

It also boasts stable GDP growth of around 6% and a fast-growing middle class. The market for soft drinks is estimated at around $8bn, with 10% growth in value per annum expected.

Coca-Cola Philippines has 19 manufacturing plants and around 9,000 employees.

With a portfolio ranging from global heavyweights such as Coca-Cola and Sprite to regional brands such as RTD alcohol Lemon Dou and bottled water brand Wilkins, the company reported revenues of $1.7bn in 2022.

The share purchase agreement announced this morning will see The Coca-Cola Company sell 100% ownership to Uxbridge, UK-headquartered CCEP and Philippine conglomerate AEV with a 60:40 ownership structure (with CCEP as majority shareholder): valuing Coca-Cola Beverages Philippines at $1.8bn (for The Coca-Cola Company, the sale aligns with its stated intent to divest bottling operations).

Coca-Cola Europacific Partners’ 5-point strategic rationale for acquiring Coca-Cola Philippines

  1. Further diversification opportunity, underpinning CCEP’s mid-term objectives
  2. Acquisition of a majority stake in ‘an established and well-run business in a highly attractive and growing market’
  3. An opportunity to leverage best practice and talent, including supporting the ‘transformation journey’ in Indonesia.
  4. Creation of a ‘strong local partner with a shared focus on people, sustainability and a long-term mindset
  5. Further strengthened relationship with The Coca-Cola Company.

Building up markets and mergers

Coca-Cola Europacific Partners was created in 2021 with the then Coca-Cola European Partners acquiring Coca-Cola Amatil for $9.93bn AUD: creating the world’s largest Coca-Cola bottler with 33,000 employees.

Combining Coca-Cola European Partners (itself created via the merger of three European bottlers back in 2015) with Coca-Cola Amatil into Coca-Cola Europacific Partners brought the European and Asia Pacific markets together​: with a footprint now covering 26 countries and some 600 million consumers. 

CCEP sees the opportunity to take its 'proven playbook' in Europe and apply it to markets which are already largely developed and therefore similar in nature - and yet with the added attraction of 'higher underlying growth fundamentals' in the population growth and increasing disposable incomes.

CCEP and AECV announced their intention of acquire Coca-Cola Philippines in August this year: following the completion of due diligence a definitive agreement has been announced this morning. 

Coca-Cola Europacific Partners says the acquisition of Coca-Cola Philippines will further strengthen its relationship with The Coca-Cola Company (a significant shareholder); position the CCEP as the world’s largest Coca-Cola bottler by both revenue and volume; and support its long-term growth strategy.

A particular focus of the acquisition is to create a more diverse footprint in the Asia Pacific Indonesia segment: particularly in supporting the ‘transformation’ in neighboring Indonesia (this fast-growing, populous country - now covered by CCEP thanks to its acquisition of Amatil) has been highlighted by CCEP as a key growth area thanks to its growing population).

“The transaction is a further step for CCEP to create a more diverse footprint within its existing API [Asia Pacific Indonesia] business segment,” says a statement from the company released this morning.

“It will also provide the opportunity to leverage best practice and talent, including supporting Indonesia’s transformation journey.

"It is therefore aligned with CCEP’s aim of driving sustainable and stronger growth through diversification and scale, and underpins the company’s mid-term strategic objectives.”

Related news

Show more

Follow us


View more