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Coca-Cola closes bottling subsidiary BIG, says ‘timing is right to…’

Upstox
By Upstox News Desk

2 min read | Updated on July 01, 2024, 13:51 IST

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SUMMARY

Starting June 30, an internal board headed by Henrique Braun, Coca-Cola President of International Development, will oversee the company's bottling investments and operations.

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Coca Cola is reducing its ownership in the bottling business to focus on brand creation

Carbonated soft drinks manufacturer The Coca‑Cola Company shut down its Bottling Investments Group (BIG) on Sunday, which was responsible for bottling operations worldwide, including India, according to a media report.

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The decision will directly impact India's operations as BIG used to control Hindustan Coca-Cola Beverages (HCCB), a wholly-owned subsidiary of Coca-Cola India.

An internal note, seen by Economic Times, quoted Henrique Braun, Coca-Cola President of International Development, saying, "The BIG corporate office will close June 30. The timing is right to sunset BIG's headquarters and to oversee our remaining bottling investments in a more streamlined way."

The note stated that India, Sri Lanka and Nepal operations will come under the "oversight of its (Coca-Cola's) internal board".

This development comes weeks after another ET report claimed that Coca-Cola India is planning to sell a minority stake in HCCB and has approached the promoters of at least four Indian business families- Bhartia family of the Jubilant Group, Parekh family of Pidilite Industries, Burman family of Dabur, and the promoter family of Asian Paints.
Also read: Coca-Cola Q1 earnings meet estimates; company raises 2024 revenue outlook

The Indian bottling arm is seeking to raise $800 million to $1 billion to grow its business ahead of a possible initial public offering (IPO).

What will happen now?

Starting June 30, an internal board headed by Braun will oversee Coca-Cola's bottling investments and operations. The board will include other top executives, Monica Howard Douglas, Enrique Rapetti, Murat Ozgel, John Murphy, and Tapaswee Chandele.

The company is reducing its ownership in the bottling business to focus on brand creation, innovation and competitive strategy, the ET report noted.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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