Coca-Cola has announced the closure of its Bottling Investments Group (BIG), a subsidiary responsible for managing its bottling operations globally, including in India. The decision marks a significant shift as the beverage giant aims to concentrate more on its brand and products, according to an internal company note reported by the Economic Times.
BIG’s closure will see its corporate office cease operations on June 30. Coca-Cola’s operations in India, Nepal, and Sri Lanka, previously managed under BIG, will now be overseen by Coca-Cola’s internal board. The bottling subsidiary, Hindustan Coca-Cola Beverages (HCCB), which served a vast network of 2.5 million retailers through 3,500 distributors, will continue its operations under new management.
Established in 2006, BIG played a crucial role in managing Coca-Cola’s bottling processes worldwide. HCCB, a major player in the Indian market, operated 16 plants across the country. Earlier this year, HCCB sold portions of its operations in Rajasthan, Bihar, West Bengal, and the Northeast to independent entities, generating approximately ₹2,420 crore.
Despite the closure, Coca-Cola’s investment in India remains strong. HCCB recently announced significant investments in new plants, including ₹1,387 crore for a facility in Maharashtra and ₹3,000 crore for another in Gujarat. In May, a further ₹700 crore was pledged for a new plant in Telangana.
The closure of BIG aligns with Coca-Cola’s strategic move to reduce its stake in bottling operations and shift focus towards enhancing its brand presence and market competitiveness. Over recent months, the company has been gradually scaling down its involvement in bottling, allowing for a more concentrated effort on brand development and market strategies.