Coca-Cola HBC’s plan to buy Irish vending company BDS Vending Solutions has become the focus of a full investigation by the country’s competition watchdog, according to the Irish times.
The Competition and Consumer Protection Agency (CCPC) said on Friday it would conduct a so-called second phase investigation into the deal, which was announced in February without disclosing financial terms.
Coca-Cola HBC, Switzerland-based bottler of Coca-Cola Company products, has agreed the multi-million euro transaction through a subsidiary in Northern Ireland.
“Following preliminary consideration, the CCPC has now decided that a full phase two investigation is required to determine whether the purchase will result in a significant reduction of competition in the state,” the competition authority said.
Established in 1993, BDS Vending is a food and beverage vending services business in Ireland with a fleet of approximately 2,000 vending machines. It was founded by David Mullan and Brian Berry, who had agreed to lead the business through the change of ownership.
Coca-Cola HBC is primarily involved in the bottling and distribution of a range of beverages, but also offers complete vending solutions to customers, including the installation, operation and maintenance of vending machines.
BDS Vending, which is based in Dublin, offers complete vending solutions to its customers, including machine sales, supply, operation, maintenance and customer support services.
Fall in sales
Coca-Cola HBC, in which the Atlanta, Georgia-based Coca-Cola Company owns a 20% stake, said last month it saw a drop in Irish sales in the first six months of 2024 as a result of the introduction of the deposit return scheme.
Releasing its half-year results, the company said Irish sparkling drinks volumes fell by “mid single digits”, while energy products showed “high single digit” growth in tough comparisons. However, drinks sold were down by high single digits due to water, the company added.
Despite its impact on volumes, he said the introduction of the guarantee return system in Ireland as well as Hungary was “encouraging”, adding that he would continue to support the launch of “well-designed” systems to ensure high package collection rates.
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