Inside Coca-Cola's US$1bn Investment in South Africa

The Coca-Cola system in South Africa has announced a R17.6bn (US$1bn) investment in South Africa to support production capacity and strengthen local distribution. 

This system is comprised of Coca‑Cola and its authorised bottlers, Coca‑Cola Beverages South Africa (CCBA) and Coca‑Cola Peninsula Beverages

The announcement follows The Coca-Cola Company selling CCBA to Coca-Cola HBC in 2025 as part of a wider refranchising move.

US$1bn investment

Luis Felipe Avellar, President of The Coca‑Cola Company’s Africa Operating Unit, says: “Our R17.6 billion investment reflects our strong belief in South Africa’s potential and our commitment to growing alongside the communities we serve.  

“We hire locally, produce locally, distribute locally and, where possible, source locally, helping to build a stronger, more integrated economy in South Africa.”

The investment will support expanded production capacity, strengthen distribution and look at innovations across the Coca‑Cola system’s value chain

In South Africa, Coca-Cola has local procurement that supports industries such as as sugar production, packaging, transportation and marketing.

Sunil Gupta, CEO of CCBA, says: “South Africa remains one of our most strategic markets in Africa, the beginning of a legacy that dates back to Coca‑Cola’s first entry on the continent in 1928. 

“These findings reaffirm the Coca‑Cola system’s role as a key driver of shared value and sustainable growth within the South African economy.”

Coca-Cola in South Africa

Through its value chain, the Coca‑Cola system supports more than 87,000 jobs in sectors including manufacturing, agriculture and transport.

This includes 7,822 direct jobs within the system and an estimated 79,300 jobs supported through suppliers, partners and customers.

In research from Steward Redqueen, Coca-Cola is estimated to have contributed R51.2bn (US$3.02bn) in value-added economic activity in 2024.

Coca-Cola’s 2025 deal 

The announcement follows a 2025 deal where The Coca-Cola Company, together with Gutsche Family Investments, agreed to sell a 75% controlling interest in CCBA to Coca-Cola HBC AG in a transaction that valued 100% of CCBA at an equity value of US$3.4bn.

The Gutsche family has an ownership stake in Coca-Cola HBC. CCBA is the largest Coca-Cola bottler in Africa, operating in 14 countries on the continent. Coca-Cola HBC is one of the largest Coca-Cola bottlers in the world, operating in 29 countries.

Zoran Bogdanovic, CEO of Coca-Cola HBC, said at the time of the deal: “With almost 75 years of experience in Nigeria and with our successful acquisition of Coca-Cola’s bottling business in Egypt in 2022, we see huge growth opportunities in Africa. It has a sizable and growing consumer base and significant potential to increase per capita consumption.

“We believe we can unlock this growth and create value for our shareholders by leveraging our best-in-class bespoke capabilities, commercial expertise and industry-leading approach to sustainability. We appreciate the trust placed in us by Coca-Cola and GFI and look forward to welcoming the CCBA team to Coca-Cola HBC and driving joint success.”

The transaction is expected to close in 2026.

Manufacturing leaders won’t want to miss Sustainability LIVE: The US Summit, taking place at Navy Pier, Chicago, on April 21–22.

Co-located with Procurement & Supply Chain LIVE, the event unites senior decision-makers at a time when supply chains, sustainability and business performance are more interdependent than ever.

Secure your place now for The US Summit – group booking discounts available.

The Coca-Cola Company's refranchising

The Coca-Cola Company is pursuing refranchising its bottling operations across the board, advancing an asset light agenda. The sale of The Coca-Cola Company’s stake in CCBA is part of a larger ongoing refranchising of company-owned or controlled bottling operations, which have also taken place in India. 

In July 2025, The Coca‑Cola Company in India sold a 40% ownership stake in Hindustan Coca‑Cola Beverages to Jubilant Bhartia Group.

Commenting on the recent US$1bn investment in South Africa, and the previous deal, Zoran says: “Congratulations to the Coca‑Cola system on this investment announcement. After the transaction completes, we look forward to continuing the great work of Coca‑Cola Beverages South Africa in the years to come.”