Bottling InvestmentsThin moat

Coca-Cola (KO) — moat facet

A segment judged by how fast it disappears: 12% of revenue, under 3% of the profit.

Bottling Investments is the part of Coca-Cola that the company is trying to make smaller. It holds the bottlers Coca-Cola still consolidates, wherever they are, and brought in $5,726 million of third-party revenue in 2025 with $426 million of operating income, about 7.4% of its segment revenue.12

Bottling Investments operating income ($m)$1m2016-$962m2017-$649m2018$358m2019$473m2021$578m2023$496m2024$426m2025Coca-Cola Forms 10-K FY2018, FY2021, FY2025; red bars are losses, as reported then
Losses while the American bottlers were being sold, and a few hundred million a year since.

Its size tracks the refranchising programme. Third-party revenue was $19,601 million in 2016, when the segment still held a large part of the American bottling system, and $3,760 million by 2018, after those territories were sold to independent bottlers.3 It rose to $7,431 million in 2019, when Coca-Cola decided in the second quarter to keep its controlling stake in Coca-Cola Beverages Africa, which then stopped being held for sale.4 Since 2023 it has fallen again, from $7,852 million to $5,726 million, as the bottlers in the Philippines, Bangladesh and parts of India were refranchised.5

It earns like a bottler because it is one. Cost of goods sold was $3,948 million, 68.8% of segment revenue, against 17.5% in Latin America's concentrate business.67 The segment was 11.9% of third-party revenue in 2025 and 2.7% of the segments' combined operating income.8 It lost money as recently as 2017 and 2018: $962 million and $649 million, as reported then.9

Africa is on its way out a second time. In 2025 the African bottling operations were classified as held for sale again, and Coca-Cola recorded a $1,274 million impairment charge on them.10 The segment's operating income fell 14.1% in 2025, which the 10-K attributes mainly to the refranchising in the Philippines, Bangladesh and India, higher commodity costs and currency.1112

Smaller has meant slightly richer lately. In the June 2026 quarter third-party revenue rose 8.2% to $1,525 million and operating income to $91 million from $59 million, a margin of about 6.0% against 4.2%; first-half operating income was $282 million against $178 million.1314

For Coca-Cola this segment is judged by how fast it disappears rather than by how well it runs. The measure is its third-party revenue: once the African sale completes it should fall further, and a segment that stops shrinking would mean the refranchising programme has run out of buyers.

Moat trajectory: Holding steady

Shrinking by design; the African bottlers are held for sale.

The number that tests this moat
Reported
Bottling Investments third-party revenue, latest quarter
$1,525M in Q2 2026, up 8.2%

The segment is meant to shrink as bottlers are refranchised; sustained growth would mean the programme has stalled.

Source: Coca-Cola Form 10-Q, Q2 2026 ↗
References
  1. ReportedIt holds the bottlers Coca-Cola still consolidates, wherever they are, and brought in $5,726 million of third-party revenue in 2025 with $426 million of operating income, about 7.4% of its segment revenue.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcIt holds the bottlers Coca-Cola still consolidates, wherever they are, and brought in $5,726 million of third-party revenue in 2025 with $426 million of operating income, about 7.4% of its segment revenue.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedThird-party revenue was $19,601 million in 2016, when the segment still held a large part of the American bottling system, and $3,760 million by 2018, after those territories were sold to independent bottlers.
    Coca-Cola Form 10-K FY2018 - segment note 2016-2018 as reported then: third-party revenue and operating income by segment (2016 EMEA $7,014M/$3,668M, Latin America $3,746M/$1,953M, North America $6,587M/$2,614M with intersegment revenue $3,738M, Asia Pacific $4,788M/$2,210M, Bottling Investments $19,601M/$1M; Bottling Investments $3,760M in 2018 and operating losses of $962M in 2017 and $649M in 2018) — FY2016-FY2018 · publ. February 2019 · source ↗
  4. ReportedIt rose to $7,431 million in 2019, when Coca-Cola decided in the second quarter to keep its controlling stake in Coca-Cola Beverages Africa, which then stopped being held for sale.
    Coca-Cola Form 10-K FY2021 - segment note 2019-2021 as reported then, including Global Ventures (2021 revenue $2,805M, operating income $293M) and EMEA (2021 segment revenue $7,193M, operating income $3,735M); Bottling Investments third-party revenue $7,431M in 2019; in the second quarter of 2019 the Company decided to maintain its controlling stake in CCBA, which then no longer qualified as held for sale — FY2019-FY2021 · publ. February 2022 · source ↗
  5. ReportedSince 2023 it has fallen again, from $7,852 million to $5,726 million, as the bottlers in the Philippines, Bangladesh and parts of India were refranchised.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  6. ReportedCost of goods sold was $3,948 million, 68.8% of segment revenue, against 17.5% in Latin America's concentrate business.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  7. Moat Explorer calcCost of goods sold was $3,948 million, 68.8% of segment revenue, against 17.5% in Latin America's concentrate business.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  8. Moat Explorer calcThe segment was 11.9% of third-party revenue in 2025 and 2.7% of the segments' combined operating income.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  9. ReportedIt lost money as recently as 2017 and 2018: $962 million and $649 million, as reported then.
    Coca-Cola Form 10-K FY2018 - segment note 2016-2018 as reported then: third-party revenue and operating income by segment (2016 EMEA $7,014M/$3,668M, Latin America $3,746M/$1,953M, North America $6,587M/$2,614M with intersegment revenue $3,738M, Asia Pacific $4,788M/$2,210M, Bottling Investments $19,601M/$1M; Bottling Investments $3,760M in 2018 and operating losses of $962M in 2017 and $649M in 2018) — FY2016-FY2018 · publ. February 2019 · source ↗
  10. ReportedIn 2025 the African bottling operations were classified as held for sale again, and Coca-Cola recorded a $1,274 million impairment charge on them.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  11. ReportedThe segment's operating income fell 14.1% in 2025, which the 10-K attributes mainly to the refranchising in the Philippines, Bangladesh and India, higher commodity costs and currency.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  12. Moat Explorer calcThe segment's operating income fell 14.1% in 2025, which the 10-K attributes mainly to the refranchising in the Philippines, Bangladesh and India, higher commodity costs and currency.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  13. ReportedIn the June 2026 quarter third-party revenue rose 8.2% to $1,525 million and operating income to $91 million from $59 million, a margin of about 6.0% against 4.2%; first-half operating income was $282 million against $178 million.
    Coca-Cola Form 10-Q for the quarter ended July 3, 2026 - segment third-party revenue and operating income for the three and six months (Q2 2026: EMEA $3,087M/$1,309M, Latin America $1,839M/$1,177M, North America $5,405M/$1,695M, Asia Pacific $1,487M/$656M, Bottling Investments $1,525M/$91M; six months operating income $2,568M/$2,215M/$3,301M/$1,192M/$282M against $2,390M/$1,861M/$2,962M/$1,271M/$178M); unit case volume growth by segment — Q2 2026 · publ. July 2026 · source ↗
  14. Moat Explorer calcIn the June 2026 quarter third-party revenue rose 8.2% to $1,525 million and operating income to $91 million from $59 million, a margin of about 6.0% against 4.2%; first-half operating income was $282 million against $178 million.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026