Coca-Cola Europacific Partners plc (CCEP)

How it makes money

Revenue is unit case volume multiplied by price, shaped by which brands, package sizes and sales channels each case comes from: a can sold through a vending machine or a bar earns a different margin than a large bottle sold in a supermarket. CCEP owns the manufacturing, packaging and delivery, letting it capture wholesale and retail margin, but it pays for concentrate and shares brand investment with The Coca-Cola Company, so its own pricing and product decisions stay bounded by the bottling agreement.

Revenue by segment

Owning the region's densest bottling plants and delivery routes for Coca-Cola brands is expensive to replicate, and the long-term bottling agreements give CCEP exclusivity in its territories. The advantage is narrow rather than wide because it depends entirely on The Coca-Cola Company continuing to want CCEP as its bottler and on Coca-Cola brands themselves staying popular; CCEP has no control over the product's formulation or brand strategy.

Soft drinks are a low-ticket, habitual purchase that people keep buying through recessions, which makes overall volume fairly steady. The more variable part is mix: consumers can trade down from premium packages or immediate-consumption channels like bars and vending toward cheaper large-format packs at the supermarket, which lowers average price even if volume holds up.

Key risks

• Dependence on The Coca-Cola Company — Nearly all of CCEP's revenue comes from Coca-Cola-branded products, and it is the sole supplier of the concentrates and syrups needed to make them. Any strategic shift or reputational problem at The Coca-Cola Company affects CCEP directly, and CCEP does not control marketing or product formulation.
• Bottling agreement is not owned outright — CCEP's right to bottle Coca-Cola products rests on long-term agreements rather than owning the brand; the terms of those agreements, including territory and product scope, are negotiated with and can be changed by The Coca-Cola Company.
• Input cost and currency exposure — As a manufacturer operating across many currencies, CCEP is exposed to swings in packaging, sugar and energy costs and to foreign-exchange movements between its many European, Australian and Indonesian markets.