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The business strategy of Coca-Cola after the sale of 7.32% of its stake in Andina Serie B




Surprise caused the decision of Coca-Cola to alienate the 7.32% it owns in the Andean Bottling Series B. Not only by the gesture of "getting out" from the company (it has another similar percentage in Series A), but by the limited time in which the operation will be carried out: the order book was opened this Tuesday and will close Today at 2:00 p.m. to award Friday the more than 69 million shares that correspond to the percentage of participation.

But it is not the first step that Coca-Cola has given in that direction. In 2011, the firm sold its stake in Embonor -the other Coca-Cola system bottler in Chile- to Rentas Libra Holding, while globally, the CEO of The Coca-Cola Company, James Quincey, already set lights of what would come for the company in terms of strategy.

In an interview with the Financial Times in May 2017 (days after assuming the position, replacing the historic Muhtar Kent), he said that "Coca-Cola has been and will always be the heart and soul of the company, but the company can be bigger than that, "adding that it was needed to break the inner culture too focused on the brand of the same name.

And the last actions have realized this. In August 2018, announced the acquisition of Costa Coffee, while in Chile, along with the companies of the system, acquired the operation of Guallarauco.

"The Coca-Cola Company constantly evaluates the most effective way to use its capital. This includes occasional changes in our investments in bottlers, from re-franchising, as we have done in many opportunities in recent years, up to modifications of our investments in bottlers. Our sale of our interests in Coca-Cola Andina will allow Coca-Cola to redirect capital, which will benefit Coca-Cola Andina and the Coca-Cola system in general, "the company said Tuesday after being consulted by the scope of the operation.

Who goes in?

The operation opens the door to the speculation of who could enter the property of Andina. Guillermo Araya, Manager of Income Studies 4, explained that the actions of Series B, since they are not "policies" (choose only two directors, while Series A chose 12) receives a 10% more dividend, "then, For a profile of a person who wants to have a more 'dividendera' action, it is a good investment. "

Although it does not rule out that it could be a more closed business, "in the sense that they warn him one day Tuesday to close it on Thursday, and at best the buyer is already closed."

Anyway, Araya dismounted the sale, pointing out that "what Coca-Cola has done is renounce its economic power and not its political power," since, at least until now, it has continued to participate in Series A.

During the day, Andina Serie B's stock closed at $ 2,525 per title, a 0.98% drop compared to the previous day, keeping track of Tuesday's downturn, where papers fell 4.07%.


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