Coca-Cola Ends Plans to Refranchise Africa Bottler
May 20 2019 - 7:42AM
Dow Jones News
By Colin Kellaher
Coca-Cola Co. (KO) on Monday said it has ended plans to
refranchise Coca-Cola Beverages Africa, opting instead to keep its
majority stake in the bottler for the foreseeable future.
The Atlanta beverages giant said it held talks with a number of
potential partners for CCBA, the largest bottler of Coca-Cola
beverages in Africa, but that it ultimately decided that it was "in
the best interests of all involved for Coca-Cola to continue to
hold and operate CCBA."
Coca-Cola, which has accounted for CCBA as a discontinued
operation since it became the controlling shareowner in October
2017, said it will reclassifying the bottler's results into
continuing operations in the second quarter.
The company said the reclassification won't affect its full-year
organic revenue and adjusted EPS growth guidance.
Coca-Cola said the while it remains committed to the
refranchising process, it sees "great opportunities to create even
more value" with CCBA, which serves 12 countries in Africa.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
May 20, 2019 07:27 ET (11:27 GMT)
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