Coca-Cola shuts down bottling subsidiary BIG, reduces bottling stake to focus on brand and product

Coca-Cola is shutting down its Bottling Investment Group (BIG), under which it manages its Indian and global bottling operations, the Economic Times reported, citing an internal company note. HT could not independently confirm this information.

When is Coca-Cola's Big Daddy going away?

Coca-Cola is shutting down its Bottling Investment Group (BIG), under which it managed its Indian and global bottling operations (Bloomberg)

The Big Corporate Office will close on June 30, and the India, Nepal and Sri Lanka operations will come under the control of Coca-Cola's internal board, the Economic Times reported, citing the note.

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BIG till now controlled Hindustan Coca-Cola Beverages (HCCB), the wholly-owned bottling company of Coca-Cola India. BIG was set up in 2006.

Now what will happen to Coca-Cola's HCCB?

HCCB, which began operations in 1997, supplies to 2.5 million retailers through 3,500 distributors, another Economic Times report said, adding that the bottling company, which runs 16 plants across the country, had earlier this year sold a part of its operations in Rajasthan, Bihar, West Bengal and the Northeast to independent entities, netting about $1.5 billion. Rs 2,420 crore was received from this sale.

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On the other hand, HCCB had also announced an investment of Rs 1,387 crore for a plant in Maharashtra last November and In December last year, the company had invested Rs 3,000 crore in Gujarat. In May this year, the company had announced an investment of Rs 3,000 crore in Gujarat. Investment of Rs 700 crore in Telangana.

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Why is Coca-Cola gradually reducing its stake in its bottling operations?

According to the report, in recent months Coca-Cola has been attempting to reduce the size of BIG, gradually eliminating its ownership in the bottling operations in order to focus more on building the brand and competing in the marketplace.

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