Coca-Cola bottler makes its move towards FTSE 100

The world’s biggest bottler of Coca-Cola by value could soon be joining the FTSE 100.
Coca-Cola Europacific Partners (CCEP), which has a market value of $36 billion, said it planned to change its listing category on the London Stock Exchange in a move that would make it eligible for inclusion in the index of London’s 100 biggest listed companies.
That would dramatically increase the visibility of the company to UK investors and make it an essential component in the many passively managed portfolios that track the index.
It could also bring more share trading volumes to London from rival exchanges in New York, Amsterdam and Madrid, where CCEP shares are also listed and traded.
The company said in a statement that as a result of reforms to the listing rules in July and the migrating of its shares to the new category, it “should, subject to FTSE approval, be eligible in due course for admission to the FTSE UK Index Series”.
It added: “Given the enlarged size of the company since its formation, the transfer would assist in increasing the profile of the company in the UK and Europe, create the opportunity to improve the liquidity of its shares traded through UK equity trading venues and promote its attractiveness to a wider potential investor base.”
The move for FTSE 100 inclusion comes after a radical change of listing rules over the summer which combined the premium and standard categories into a single category, members of which are now eligible for inclusion in the FTSE Russell indices.
The rule changes were welcomed by many in the City who hoped London would attract more dynamic companies, though some investors were worried about the shift of power from shareholders to founders and management.
CCEP, which is headquartered in Uxbridge, west London, produces the drink under licence from Coca-Cola Company of the US and employs 42,000 people in 100 plants in 31 countries, bottling 22.3 billion litres of carbonated drinks for an estimated 600 million consumers.
In the UK it employs 3,600 people in eight sites, also producing other brands such as Fanta, Dr Pepper, Sprite and Schweppes.
Its predecessor company Coca-Cola European Partners first listed in London in 2019 but only on its standard segment, not its premium category. It merged with Coca-Cola Amatil of Australia a year later and changed its name to CCEP.
Admission to FTSE indices would be conditional on “sufficient volume of its trading in the ordinary shares migrating to UK equity trading venues”, it said.
With a different bottler, Coca-Cola HBC, already in the index, the new inclusion would give every UK index investor considerable exposure to the ubiquitous fizzy drink.
The constituents of the FTSE 100 and FTSE 250 are reviewed every quarter, with the next decision on new inclusions, promotions and demotions due in December. The 100 largest by market value make it into the FTSE 100 as long as they meet the requirement for a free float of at least 25 per cent of their shares.
Coca-Cola Company owns 19 per cent of CCEP and the free float is 45 per cent. Olive Partners, a group controlled by former bottler founders, owns 36 per cent.
On present form Vistry Group, the housebuilder formerly known as Bovis, is most likely to be dislodged from the index by the new entrant. Its shares have dived after a profit warning last week.
Other companies that have applied to list under the new regime include Deliveroo, Oxford Nanopore and THG.
CCEP shares rose 2¼p, or 3.3 per cent, to 72¾p at the close in London.