Shares in Coca-Cola bottlers drop sharply on weak outlook
Coca-Cola HBC (CCH.BN), opens new tab, which bottles drinks in 29 counties including Italy, Russia and Nigeria, forecast annual organic or self-generated revenue growth at the top end of its 6%-8% guidance range, but fell short of average market estimates of 8.8%.
Meanwhile, Coca-Cola Europacific Partners (CCEP), which operates in 31 countries in Western Europe, Australia, Asia Pacific and Southeast Asia, guided investors to expect revenue growth between 3% and 4%, down from an earlier forecast of about 4%.
Shares in the companies dropped roughly 10% in early London trading, both underperforming the wider FTSE 100 (.FTSE), opens new tab index which was up 0.2%.
In addition to global concerns that U.S. tariffs are weighing on consumer and business sentiment, the bottlers have over the past year faced backlashes from consumers in Indonesia, where CCEP operates, and Egypt, where Coca-Cola HBC operates, as consumers shied away from U.S. brands due to the Israel-Gaza conflict.
The companies, which bottle Coca-Cola and other drinks in different regions, have been raising prices to shield margins from elevated costs and lower spending.
Last month, Coca-Cola Co (KO.N), opens new tab, which holds stakes in both the bottlers, said cost pressures stemming from global trade dynamics remained manageable, but added it would consider switching to cheaper packaging options, such as plastic bottles, after the Trump administration imposed a 25% tariff on aluminium imports.
Coca-Cola HBC CEO Zoran Bogdanovic told Reuters the company was monitoring U.S. trade policies, but noted that its localized sourcing and production model limits direct exposure to U.S. tariffs.
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