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The Coca-Cola Company Announces Plans to Delay Listing of Coca-Cola Beverages Africa as a Publicly Traded Company

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The Coca-Cola Company (NYSE: KO) has announced a delay in plans to publicly list Coca-Cola Beverages Africa (CCBA). Initially disclosed in April 2021, this decision aligns with the company's focus on brand development and innovation. The timing of the IPO will depend on macroeconomic conditions, and plans for CCBA to operate as an independent public company remain unchanged. CCBA is the largest Coca-Cola bottling partner in Africa, accounting for over 40% of Coca-Cola products sold on the continent.

Positive
  • CCBA remains the largest Coca-Cola bottling partner in Africa, which could enhance long-term value.
  • The focus on innovation and brand building may lead to improved market positioning.
Negative
  • Delay in IPO could impact investor perception and limit immediate capital raising opportunities.
  • Continued macroeconomic uncertainty may further postpone future IPO plans.

ATLANTA--(BUSINESS WIRE)-- The Coca-Cola Company announced today that it is delaying plans to list Coca-Cola Beverages Africa (CCBA) as a publicly traded company.

In April 2021, The Coca-Cola Company first disclosed its intention to sell a portion of its shareholding in CCBA via an initial public offering. The decision is in line with The Coca-Cola Company’s objective of focusing its resources on building consumer-loved brands and innovation.

The announcement said the exact timing would be driven by a number of factors, including macroeconomic conditions.

The Coca-Cola Company will continue to evaluate macroeconomic conditions in deciding future timing for an IPO in 2023. Plans to have an Africa-focused bottler traded as an independent public company remain unchanged.

About The Coca-Cola Company

The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries and territories. Our company’s purpose is to refresh the world and make a difference. We sell multiple billion-dollar brands across several beverage categories worldwide. Our portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Our hydration, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Gold Peak and Ayataka. Our nutrition, juice, dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. We’re constantly transforming our portfolio, from reducing sugar in our drinks to bringing innovative new products to market. We seek to positively impact people’s lives, communities and the planet through water replenishment, packaging recycling, sustainable sourcing practices and carbon emissions reductions across our value chain. Together with our bottling partners, we employ more than 700,000 people, helping bring economic opportunity to local communities worldwide. Learn more at www.coca-colacompany.com and follow us on Twitter, Instagram, Facebook and LinkedIn.

About Coca-Cola Beverages Africa

CCBA is the 8th largest Coca-Cola bottling partner in the world by revenue, and the largest on the continent. It accounts for over 40% of all Coca-Cola products sold in Africa by volume. With over 17,000 employees in Africa, CCBA services more than 600,000 customers with a host of international and local brands. The group was formed in July 2016 after the successful combination of the southern and east Africa bottling operations of the non-alcoholic ready-to-drink beverages businesses of The Coca-Cola Company, SABMiller plc and Gutsche Family Investments. CCBA shareholders are currently: The Coca-Cola Company 66.5% and Gutsche Family Investments 33.5%. CCBA operates in 14 countries, including its six key markets of South Africa, Kenya, Ethiopia, Uganda, Mozambique and Namibia, as well as Tanzania, Botswana, Ghana, Zambia, the islands of Comoros and Mayotte, Eswatini and Lesotho. Learn more at https://www.ccbagroup.com and follow us on LinkedIn

Forward-Looking Statements

This press release may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause The Coca-Cola Company’s actual results to differ materially from its historical experience and our present expectations or projections. These risks include, but are not limited to, our ability to realize the anticipated benefits from the potential initial public offering of Coca-Cola Beverages Africa, including whether such initial public offering will be completed on the anticipated timeline, if at all, and other risks discussed in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2021 and our subsequently filed reports, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements.

Disclaimer

This announcement is not an offer to sell or a solicitation of any offer to buy any securities to be issued by CCBA in any jurisdiction, including the United States. The securities of CCBA have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered absent registration or an exemption from registration. There will be no public offering of the securities in the United States.

CCBA Contacts:

Investor Relations: Janine Ackermann, Head of Investor Relations, JAckermann@ccbagroup.com

Media: Wendy Thole-Muir, Head of Communications, wthole-muir@ccbagroup.com

The Coca-Cola Company Contacts:

Investors and Analysts: Tim Leveridge, koinvestorrelations@coca-cola.com

Media: Scott Leith, sleith@coca-cola.com

Source: The Coca-Cola Company

FAQ

What is the reason for Coca-Cola's IPO delay for Coca-Cola Beverages Africa (KO)?

The delay is attributed to a focus on macroeconomic conditions and the company's objective to concentrate on brand development.

When did Coca-Cola first announce plans for the CCBA IPO?

Coca-Cola first announced its intention to sell a portion of its shareholding in CCBA in April 2021.

How significant is CCBA in Coca-Cola's business model?

CCBA is the largest bottling partner in Africa, accounting for over 40% of Coca-Cola products sold in the region.

What factors will influence the IPO timing for CCBA?

The exact timing of the IPO will be driven by macroeconomic conditions and other market factors.

What does the delay in the CCBA IPO mean for Coca-Cola's strategy?

The delay emphasizes Coca-Cola's commitment to innovation and building consumer-loved brands before moving to a public offering.

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