Sources inform “Globes: that the Central Bottling Company (Coca Cola Israel), controlled by Moshe (Mozi) Wertheim, is switching to a holding company structure with a holding company. The company is preparing to enter new fields and expand overseas.
In order to prepare for future development in Israel and overseas, Wertheim is about to issue 20% of the company shares at a company value of NIS 1 billion. Central Bottling has an estimated sales turnover of NIS 2 billion. At this stage, which activities will be combined with the issue is still being discussed. It is unclear how many activities the business entity whose shares are issued will retain.
At the same time, a holding company, headed by Central Bottling managing director Ron Kobrovsky, will be set up above Central Bottling. The holding company will also have a CFO, who will not deal with current activity, but will prepare for the new fields the company will enter.
The transition to a holding company structure involves an attempt to exploit synergies between the various business units in the group, which have hitherto operated as independent companies.
Since Central Bottling has mostly exhausted its growth opportunities in the Israeli market, except for the wine industry, it feels ready to undertake overseas ventures, which Kobrovsky will lead. It is reasonable to assume that the overseas expansion will not be based on the Coca Cola beverage, since the company serves as bottler in Israel only. Central Bottling can expand overseas with its own local brands, such as Prigat and Neviot, as well as in other fields it may enter.
It cannot be ruled out that the company will also become active in the field of flavored dairy beverages. Another possibility being considered is building an overseas distribution platform, including Eastern Europe and South America, through which Central Bottling will distribute and market wines produced by Israeli winemakers having difficulty penetrating overseas markets.
As reported exclusively in “Globes”, Central Bottling is negotiating with the Carmel Mizrahi cooperative to set up a joint company, including Carlsberg and Carmel Mizrahi, in which each partner would own 50%. Judging by these plans, Central Bottling plans to operate in all beverage categories, including wine.
Central Bottling distributes alcoholic beverages through the Golan Height Wineries.
Central Bottling is preparing for the possibility that one of the food companies may enter the beverage market, which would change the rules of the game in that market, in which Central Bottling reigns supreme.
Published by Globes [online] - www.globes.co.il - on June 12, 2003