Coca-Cola European Partners – €46.10
SHARES SAYS: The Coca-Cola Company stake: 18.6% 60
COCA COLA EUROPEAN PARTNERS 50 40 30
2016
2017
2018
2019
CREATED THROUGH 2016’S three-way merger of Coca-Cola Enterprises, Coca-Cola Iberian Partners and Coca-Cola Efrischungsgetranke, Uxbridgeheadquartered Coca-Cola European Partners is the world’s largest Coca-Cola bottler by revenue. It boasts leading market positions in 13 Western European nations including France, Germany, the UK and Spain, with a potential market of more than 300m consumers. Coca-Cola trademark beverages represent more than 60% of total sales by category, but CocaCola European Partners’ total beverage strategy involves growing a portfolio of complementary sparkling flavoured soft drinks, energy drinks, ready-to-drink coffees and teas, waters, juice and plant-based beverages.
Coca-Cola European Partners’ competitive advantages include one of the largest fast-moving consumer goods sales forces in Europe. European giant Germany is Coca-Cola European Partners’ biggest single market at 20% of revenue and performance has been turned around since the 2016 merger. Rising awareness of the harmful impact that single-use plastics have on the environment has catapulted plastic packaging to the top of the public agenda. Encouragingly, Coca-Cola European Partners was one of the first companies globally to make commitments to packaging and sustainability. According to Liberum, Coca-Cola European Partners is ‘within striking distance of its goal of 100% recyclable packaging’ and offers scope for €1bn of annual share buybacks if bolt-on acquisitions don’t materialise. The business also has scope to be run more efficiently. Prospective price-to-earnings multiples of 16.6 for 2020 and 15.5 for 2021 mean Coca-Cola European Partners is slightly cheaper than The Cola-Cola Company and Coca-Cola HBC.
CCEP is the world’s largest Coca-Cola bottler by revenue billions
€12 €8 €4 €0
Coca-Cola European Partners
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Source: Company data, Liberum
05 December 2019 | SHARES |
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