CCEP is one of the world’s largest Coca-Cola bottling corporations, which also has the number one role in the production, marketing and distribution of Coca-Cola-owned products and brands in Europe and various APAC markets.
The company recently announced its currency effects for fiscal 2023, announcing an 8% year-on-year cash accrual to €18. 3 billion ($19. 9 billion) and an 11. 5% year-on-year accrual in after-tax profits. to 1. 7 billion euros ($1. 84 billion).
As a result, the Australia, Pacific and Indonesia (API) region saw a 5% year-on-year increase in cash to €3. 75 billion (US$4. 07 billion) and a 10. 5% year-on-year increase in operating cash. Profit to €497 million ($539. 3 million), generating strong expansion despite a large-scale portfolio realignment in Indonesia and the finishing touch of a primary acquisition in the Philippines.
“We complexed our long-term transformation strategy in Indonesia and also finalized the acquisition of Coca-Cola Beverages Philippines with Abolitz Equity Ventures (AEV); it will now have a 60:40 ownership structure, with 60% for CCEP and 40% for CCEP. % to AEV,” Damian Gammell, CEO of CCEP, said at the investor convention where the results were delivered.
“We are well placed for FY24 and beyond [being] stronger and better, more diversified and robust, and our categories remain resilient despite existing macroeconomic and geopolitical volatility.
CCEP acquired Coca-Cola Philippines from The Coca-Cola Company, which is the main company that produces the well-known concentrated syrup and beverage bases Coca-Cola that are sold to Coca-Cola bottlers worldwide.
Gammell highlighted the acquisition as a way to bring CCEP closer to The Coca-Cola Company and as a “major strategic step” in the company’s plans to expand into APAC.
“This allows us to further diversify geographically, doubling the length of the API region, which has now been renamed Asia, Pacific and Southeast Asia (APS); The Philippines is also a very attractive and developing market,” he said.
“The ready-to-drink non-alcoholic beverages (NARTD) market is valued at around €8 billion ($8. 68 billion) and is expected to grow by around 10%; and its population is in the millions, growing by about 1. 5% year-on-year. .
“In fiscal 2023, the Philippines generated approximately €1. 7 billion ($1. 84 billion) in profit and approximately €105 million ($114 million) in operating profit; and Coca-Cola already has about 45% of the local NARTD market, as well as about 72% of the percentage of sparkling wines.
“Overall, this is an opportunity to also tap into the most productive local practices and talent and our transformational adventure in Indonesia. “
CCEP has also implemented a long-term transformation strategy in Indonesia to optimize its portfolio and paints into new projects in line with declining customer demand.
“We’ve controlled local wallet SKUs by about 60%, as part of our plans to have more options on where we need to play,” he added.
“In Indonesia, the focus will now be on sparkling and ready-to-drink teas, creating new consumption opportunities beyond Ramadan for younger consumers.
“We have also developed a new pricing channel strategy that incorporates a deeper understanding of Indonesian customers’ sensitivities and affordability; Those are the right long-term decisions to optimize our charge base and reshape our direction to market. “
Among the projects introduced in Indonesia are the launch of Coke Zero and Sprite Zero, as well as the involvement of social media influencers to attract more Gen Z consumers and, as is the case, significant effects have already been noticed with the distribution of all sparkling wines. wines. Brands and packaging increased in fiscal 2023 from last year, with sugar-free products growing at a steady pace.
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