Why Invest in Coca-Cola HBC?

Why invest in Coca-Cola HBC?

WE ARE A GROWTH-FOCUSED CPG BUSINESS AND STRATEGIC BOTTLING PARTNER OF THE COCA-COLA COMPANY operating IN 29 MARKETS across three continents

Our vision is to be the leading 24/7 beverage partner, growing with our customers by ensuring we have a beverage for each consumer moment around the clock.

 

5 reasons to invest in Coca-Cola HBC

1. Leader in the growing non-alcoholic ready-to-drink industry

We are the leader in the growing and dynamic non-alcoholic-ready-to-drink industry. We are number one in the sparkling category, and since sparkling is expected to contribute a third of the total NARTD value growth in the next five to seven years, we are well-positioned to capture this growth. We also have strong positions in other high-potential categories like energy and ready-to-drink tea, which are expected to grow faster than the industry, with a clear opportunity to expand our share further. Finally, there are categories, like plant-based beverages, that we are just entering, but in which our scale and capabilities make us a formidable challenger. 

2. The strongest, broadest, most flexible portfolio of brands in the industry with growth opportunities across high value occasions and categories

The brands and categories we sell give us a strong, broad, flexible portfolio which can truly serve consumers, 24/7. Our products cater to a growing range of tastes and preferences with a wider choice of healthier options and premium products.

Our sparkling portfolio has evolved with the proliferation of zero-sugar and light variants, more convenient packs, and broader innovation in flavours. We have significantly increased our focus on the lucrative adult sparkling segment, both by refreshing existing brands and with new ones.

Energy as a category continues to grow rapidly and we have a range of brands to appeal to different consumers at different price points. We will continue to focus on premium offerings within water with our hydration portfolio strategy which allows us to stratify our brands to address a range of water segments and price tiers while driving improved revenue per case.

Ready-to-drink tea is a category with the potential for faster growth than sparkling, and with the addition of Fuzetea we have a strong brand to address this opportunity.

The juice category is expected to be slower growth than the overall industry, and here our focus is on product stratification to capture premium revenue pools and drive improved revenue per case.

We have entered new categories like plant-based beverages with AdeZ which offer a large long-term growth opportunity. We also benefit from the highly complementary premium spirits category which helps us to unlock the potential of our portfolio, particularly in hotels, restaurants, cafes and bars.

Finally, coffee is a large market in our territories and one in which we have developed expertise over the past few years and which we will leverage with the launch of Costa as well as Caffe Vergnano in the premium segment. 

This range of brands and categories gives us an undisputed 24/7 capability to appeal to a larger group of consumers across all occasions, whether it’s a coffee first thing in the morning, a Coke break, water or sports beverage during a workout, FUZETEA when you’re relaxing at home or Schweppes, Kinley or Royal Bliss as mixers at the bar with a premium spirit supplied by us.

3. A diverse, balanced country portfolio with exposure to growth markets 

Our geographic footprint creates a diverse balance. We have exposure to fast growing Emerging and Developing markets as well as a strong presence in the profitable and cash generative Established markets, and we benefit from the portfolio effect of exposure to different economic cycles. We are proven operators in volatile socio-economic conditions.

Our territory has a population of 740 million, which is expected to grow by 4.4% by 2025. In addition, when looking at the sparkling category in particular, many of our countries have significant headroom to increase per capita consumption. A big part of this opportunity is our presence in Emerging markets, but even some of our Established markets such as Italy have sizeable room for growth. If we bring the average per capita consumption of Coca-Cola HBC to the average EU level we would double our volumes. We believe that the right products, in particular our newly evolved 24/7 portfolio, combined with our commercial strategies can help us unlock this potential.

4. Relentless focus on cost and efficiency to fuel investments for growth

We have a strong track record of driving cost efficiencies and this has been, and remains, an important part of our strategy. While the majority of our large-scale restructuring work has now been completed, we will continue to strive for further efficiencies. Technology will play a key role in continuing to drive efficiencies in our supply chain. To ensure our business is fit for the future, we are transforming and digitalising many of our supply chain and sales execution processes and through that creating fuel to accelerate our growth. 

5. A clear vision, strategy and targets 

The beverage industry continues to have high-potential and we see many growth opportunities within our evolving brand portfolio and the markets we operate in. Our Growth Story 2025 strategy reflects our vision to be the 24/7 Beverage Partner. It is built on five key pillars of growth, each of which is a core strength or competitive advantage.