Coca-Cola HBC (LON:CCH) executives used an investor event in Cairo to outline the company’s progress in Egypt since acquiring the local Coca-Cola bottling franchise in 2022, presenting the market as a major growth platform despite inflation, currency devaluation and geopolitical disruption.
Chief Operating Officer Naya Kalogeraki said Egypt has become an important part of Coca-Cola HBC’s business, representing 11% of group volumes and ranking as the company’s third-largest market by volume. She said the company has focused on stabilizing and integrating the business, investing in capacity and sales execution, and expanding the portfolio beyond sparkling drinks and water.
Egypt Seen as a Large, Underpenetrated Market
Adnan Topi?, general manager of Coca-Cola HBC Egypt, said Egypt’s population of nearly 120 million people, with about 60% under the age of 30, creates a significant consumer recruitment opportunity. He said the country has the second-highest GDP in Africa and is expected to grow at about 4% annually.
Topi? also pointed to low per-capita consumption as a key source of upside. He said Egypt’s sparkling per-capita consumption of 110 is the second-lowest across Coca-Cola HBC’s current footprint, despite 8% growth in 2025.
Kalogeraki said Coca-Cola HBC has narrowed the gap with the market leader in sparkling beverages from 13 percentage points in 2022 to five points by the end of 2025. In a Q&A session, Topi? said local brands gained share during boycott-related disruption in 2023 and 2024, but added that those brands have recently been declining.
Portfolio Expansion Drives Growth
Executives said Coca-Cola HBC has broadened the Egyptian business from a narrower focus on sparkling drinks and water into a multi-category portfolio spanning sparkling, energy and hydration.
Topi? said trademark Coca-Cola has benefited from local marketing tied to football, music, Ramadan and university campuses. He cited partnerships with Al Ahly, local artist Mohamed Ramadan and Ramadan community events, including a Guinness World Record for the most community meals delivered in an hour.
He said Egypt was the fastest-growing country for trademark Coke in Africa in 2025 and ranked in the top 10 globally.
Schweppes was another focus of the presentation. Topi? said Egypt is the largest Schweppes market globally and that the brand has achieved record sales. Executives attributed the brand’s strength to longstanding local relevance, premium packaging, flavor innovation and consistent marketing.
The company also highlighted growth in Fanta and Sprite, with Topi? saying Fanta volumes rose 6% and Sprite volumes rose 9% in 2025.
Energy and Hydration Highlighted as Growth Areas
Topi? described energy drinks as a strategic growth pillar, saying Coca-Cola HBC had no presence in the category in Egypt at the time of acquisition. The company launched Monster and Fury in 2023, pursuing a two-tier strategy across premium and affordable price points.
He said the company has become the No. 2 energy player within three years of launch and that Egypt is now the fastest-growing energy market within Coca-Cola HBC territories. The category now contributes more than 10% of revenue, according to Topi?.
In hydration, Topi? said the company has made water a smaller but more profitable part of the portfolio and entered sports hydration with Powerade in 2024. He said Powerade has achieved a 78% value share in the advanced hydration segment.
Digital Tools and Route-to-Market Changes
Executives emphasized the role of data, artificial intelligence and route-to-market transformation in improving execution. Topi? said the company has identified more than 31,000 potential outlets it was not previously serving and has activated 15,000 outlets through its “On the Street” initiative using AI-led targeting.
He said activated outlets generated 36% higher revenue than benchmark non-activated stores, supported by stronger single-serve mix and improved in-store execution.
Coca-Cola HBC has also expanded direct customer coverage to 53%, doubled active accounts since 2021 and tripled its cooler base, Topi? said. He said cooler penetration has reached 87% in high-potential outlets.
The company also launched a customer portal in 2023 and a WhatsApp chatbot in 2024, with Topi? saying the digital commerce tools have increased ordering convenience and expanded reach.
Investment, Margins and Future Targets
Konstantinos Vairlis, CFO of Coca-Cola HBC Egypt, said the company has tripled annual capital expenditure since 2021, investing in production capacity, cooler expansion, digital platforms and sustainability initiatives. He also said annual system marketing investment with The Coca-Cola Company has doubled since 2021.
Vairlis said Coca-Cola HBC secured €130 million from the European Bank for Reconstruction and Development in 2024, which supported key initiatives. He added that since 2022 the business has delivered a 350-basis-point expansion in gross margins and improvements in working capital, while EBIT margins have remained resilient despite volatility.
Looking ahead, Topi? said the Egyptian business has a midterm algorithm for double-digit organic revenue growth and consistent annual margin improvement. He said the company’s ambition is to become the No. 1 player in Egypt in the medium term.
During the Q&A session, executives said Egypt’s capital expenditure as a percentage of revenue will remain above the group average as the company continues investing in revenue-generating assets, capacity, digital platforms and sustainability. CFO Anastasis Stamoulis said the company will continue reinvesting productivity gains into marketing, execution, people and capabilities while still expecting margin improvement.
Chief Executive Zoran Bogdanovic said Egypt is also becoming a corporate services and digital hub for the group, supported by local talent. He said the company had opened a new digital hub in Cairo and expects the site to grow from about 250 employees to 450 next year.
Bogdanovic closed by recognizing The Coca-Cola Company and Monster Energy as strategic partners, saying the collaboration had been important through challenging market conditions. “The best is yet to come,” he said.
About Coca-Cola HBC (LON:CCH)
Coca-Cola HBC is a growth-focused consumer packaged goods business and strategic bottling partner of The Coca-Cola Company. We open up moments that refresh us all, by creating value for our stakeholders and supporting the socio-economic development of the communities in which we operate. With a vision to be the leading 24/7 beverage partner, we offer drinks for all occasions around the clock and work together with our customers to serve 760 million consumers across a broad geographic footprint of 29 countries.
