Coca-Cola HBC (CCH) Investor Update summary

Strategic Market Context and Growth Opportunity

• Nigeria accounts for 15% of group volumes and ranks in the top five for revenues, with a population of 230 million and strong demographic tailwinds, projected to become the world's third most populous by 2050.

• The market is highly diverse, with over 300 tribes, 500 languages, rapid digital adoption, and a vibrant SME sector.

• Nearly 70% of Nigerians are under 30, fueling long-term growth and consumer recruitment.

• Per capita sparkling consumption is 72, well below the group average, but has grown nearly 20% in five years, with further mid-single-digit volume growth expected.

• Industry volume outlook is robust, with NARTD and sparkling categories expected to grow 5-6% and 4-5% CAGR, respectively.

Portfolio Strategy and Execution

• The 24/7 portfolio is tailored for Nigeria, balancing affordability (returnable glass bottles) and premiumization (Schweppes, cans, premium spirits).

• Energy drinks are a key growth engine, now contributing double-digit revenue share, with Monster and Predator brands targeting different consumer segments; Predator saw a 150% four-year volume CAGR, making Nigeria its top market globally.

• Marketing leverages local culture and passion points, such as music (Coke Studio) and football (Chelsea FC sponsorship, grassroots tournaments), reaching 10 million consumers and selling over 400 million artist-labeled bottles.

• Sparkling, energy, juices, and premium spirits all delivered double-digit volume CAGRs over five years.

• Achieved a 10% five-year volume CAGR and nearly 10 percentage point market share gain in NARTD since 2019.

Capabilities, Digital Tools, and Segmentation

• Over €1.5bn invested in Nigeria over the past decade, with a further €1bn planned over the next five years.

• Bespoke capabilities include scenario-based revenue growth management, frequent P&L simulations, proactive forex planning, and dynamic pricing.

• Digital tools like the WhatsApp chatbot and customer portal now account for 47% of total volume sold, streamlining order-taking and customer service.

• Data, insights, and analytics (DIA) enable hyper-personalized execution, with Ignite Nigeria linking consumer and customer data for targeted growth; pilots delivered 7% higher volumes and 4% higher NSR per outlet.

• Local talent development and leadership programs support operational resilience and adaptability.