Türkiye Launches Competition Probe into Coca-Cola İçecek Subsidiary

Türkiye’s competition authority has launched a formal investigation into Coca-Cola İçecek, focusing on potential violations of competition law through alleged exclusive retail agreements and unfair market practices.

According to a statement issued by the Rekabet Kurumu on 10 June, the investigation targets Coca-Cola Satış ve Dağıtım, the group’s sales and distribution subsidiary. The inquiry will assess whether the company violated Act No. 4054 on the Protection of Competition by restricting retail partners from selling rival products.

Stock Price Drops Following Announcement

Following the announcement, Coca-Cola İçecek shares fell by 2.47%, trading at TL 51.30 ($1.31) around noon GMT. The market response reflects investor concerns over regulatory risk and potential penalties.

Company Response: Investigation Doesn’t Imply Guilt

Coca-Cola İçecek emphasized in an official statement that the investigation does not imply a breach has occurred or that a penalty is certain:

“The launch of a probe does not necessarily mean that the company subject to investigation has actually violated The Act on the Protection of Competition No. 4054 nor it will be subject to a penalty.”

History of Antitrust Scrutiny in Türkiye

This isn’t Coca-Cola Satış ve Dağıtım’s first encounter with Türkiye’s competition watchdog. In 2021, the company was investigated for obstructing the sale of competing brands at points of sale. As a result, in 2022, the Rekabet Kurumu accepted a commitment package from the company to resolve these issues, which included more equitable discount and promotion policies across similar beverage categories.

Operational Outlook Remains Cautious for 2025

In its March 2025 guidance, Coca-Cola İçecek described 2024 as a challenging year, and outlined a strategy focused on volume growth and consumer affordability. For 2025, the company anticipates low to mid-single-digit volume growth in Türkiye and mid to high-single-digit growth internationally, with a flat EBIT margin expected due to inflationary pressure.

Sales Volumes Reflect Regional Weakness

In 2024, international sales volumes fell 3.6% to 934 million unit cases, with Pakistan cited as the main cause of the decline. Turkish volumes remained flat at 568 million unit cases, while total consolidated volumes dropped 2.2% to 1.5 billion unit cases.