COCA-COLA EUROPACIFIC PARTNERS (CCEP) SHARES: 2025 PERFORMANCE IN UK, KEY DRIVERS, MILESTONES AND RISKS —'26 OUTLOOK

Performance overview of CCEP UK shares in 2025

Coca-Cola Europacific Partners (CCEP) remains a key player in the global beverage industry and holds significant weight within the consumer staples sector. In 2025, the company’s performance in the United Kingdom reflected a combination of strong brand loyalty, transformation initiatives, and macroeconomic resilience. Traded on the London Stock Exchange under the ticker CCEP, the stock demonstrated steady growth complemented by positive investor sentiment around its strategic deals and sustainability efforts.

From January to December 2025, CCEP’s UK-listed shares appreciated approximately 12%, outperforming the FTSE 100 which posted modest single-digit growth amid broader economic concerns. This uptrend was largely attributed to:

• Stable sales growth across western Europe, driven by higher demand in out-of-home consumption channels, especially during warmer seasonal quarters.
• The integration of the Indonesian business unit, acquired in 2021, which began to yield meaningful earnings contributions.
• Continuous focus on revenue management, including pricing strategies and product mix optimisation.
• Strong operative cash flow allowing for share buybacks and increased dividend guidance.

Revenue performance in the UK specifically benefited from marketing innovations and localised brand campaigns that resonated with younger consumers. Product innovations such as low-calorie variants and premium formats catering to health-conscious buyers were well received, strengthening the core Coca-Cola, Fanta, and Sprite portfolios domestically.

Margins improved through disciplined cost management and logistical efficiency, particularly with advances in automated warehousing and stronger supplier relationships. This drove the operating margin up by 60 basis points year-on-year within the Europe zone.

Notably, investor response remained favourable despite inflationary pressure and geopolitical tensions, including supply chain uncertainty in Eastern Europe. As a defensive stock, CCEP yielded consistent earnings—supporting its role as a dividend-paying anchor within diversified UK portfolios.

The 2025 dividend yield for UK investors stood at about 3.1%, offering both income and growth potential amid flatter returns from fixed income alternatives. Analysts praised the group’s balanced capital allocation strategy, which contributed to an attractive total shareholder return of around 16% for the calendar year.

As 2025 drew to a close, CCEP reaffirmed its full-year guidance with low-to-mid single digit growth projections and reiterated its commitment to net zero by 2040, reinforcing its ESG appeal. The share’s performance across broker ratings remained mostly in “buy” or “hold” territory, reinforcing its stability heading into 2026.

Key growth drivers and 2025 milestones

The upward momentum of CCEP shares in 2025 reflected a convergence of strategic decisions, favourable market dynamics, and operational resilience. Several critical milestones and catalysts underpinned this performance, shaping investor sentiment:

1. Expansion of the RTD portfolio

CCEP broadened its ready-to-drink (RTD) beverage offerings, addressing demand for healthier and functional drinks across the UK. Caffeinated sparkling waters, sugar-free colas, and sports drinks under partnerships with premium brands saw robust volume and value growth. These launches were supported by omnichannel advertising blending social media campaigns and in-store promotions that resonated across generations Z and millennials.

2. Success of sustainability-linked strategies

Investors monitored CCEP’s progress on its “This is Forward” sustainability roadmap, which delivered measurable outcomes in 2025:

• 50% of PET packages made from recycled material, including rollout of new packaging designs across UK supermarkets.
• Reduction in water usage and increased reliance on renewable energy in UK production sites such as Sidcup and Edmonton.
• High ESG scores maintained by independent agencies, increasing fund flows from impact-oriented institutional investors.

3. Strategic partnerships and route-to-market reinforcements

Through enhanced distribution partnerships, particularly with high-street retailers and foodservice aggregators, CCEP expanded both its reach and agility. E-commerce presence grew, particularly in direct-to-consumer channels such as Amazon and Ocado. The company also secured exclusive rights for new launches in emerging energy drink segments, thereby widening category reach within UK convenience formats.

4. Technology-driven operational efficiency

CCEP made strides in operational efficiency through digital transformation projects spanning demand planning, inventory control, and predictive maintenance. The adoption of machine learning tools streamlined production cycles and reduced cost-to-serve in high-density UK urban markets.

5. Dividend growth and capital discipline

Confidence in future earnings was underscored by a 6% hike in dividend payouts, returning capital to shareholders amid strong free cash flows. Continued adherence to a conservative gearing ratio and strategic debt management ensured that inorganic growth options remained viable.

6. Employee engagement and workforce innovation

CCEP ranked among UK’s top FMCG employers in 2025, with a focus on workforce development, hybrid working models, and DE&I (diversity, equity, and inclusion) policies aligned with stakeholder expectations. Internal productivity gains played an indirect yet meaningful role in shareholder returns as retention and morale remained high.

When benchmarked against sector competitors such as PepsiCo and Nestlé, CCEP’s nimble brand positioning and supply-side flexibility helped it secure incremental market share within the non-alcoholic beverage segment across the UK.

Risks and 2026 outlook for CCEP

Looking ahead, Coca-Cola Europacific Partners faces a dynamic 2026 filled with both promise and uncertainty. While tailwinds like brand strength, operational scale, and strategic clarity continue, several headwinds could affect share performance depending on macro and market-specific developments.

Key risks to monitor

• Regulatory environment: Potential changes to UK sugar taxes, plastic levies or broader food and beverage standards could impact profitability, especially for sugary or carbonated SKUs. Enhanced disclosure regulations on ESG metrics may require sharper compliance mechanisms.
• Cost inflation: Input costs, particularly packaging materials and energy, remain volatile. While CCEP has hedging strategies in place, sustained inflationary conditions could pressure gross margins in 2026.
• Consumer trends: The shift toward plant-based or functional wellness drinks may outpace reformulation timelines if innovation cycles lag. Brand equity among younger cohorts may erode if digital storytelling fails to evolve.
• Supply chain vulnerabilities: Despite 2025 progress, geopolitical risks—especially in European export routes—could cause delays or cost spikes. Diversified sourcing and in-market production buffers are partial mitigants.
• Currency volatility: As a cross-border group, currency fluctuations (especially GBP vs. EUR and USD pairings) continue to represent financial exposure, particularly regarding dividend repatriation and operational costs.

Strategic priorities for 2026

CCEP's 2026 roadmap emphasises “digitally enabled growth” through further automation, AI-driven consumer insights, and loyalty programmes connected via mobile ecosystems. Other initiatives include:

• Carbon-neutral milestones: UK plants aiming to operate fully on green electricity while reducing Scope 3 emissions through supplier engagement.
• Category expansion: Moving into fermented beverages and enhanced waters to meet wellness demands.
• Leverage AI in customer service: Elevating digital ordering and customer engagement tools with predictive analytics across retail and vending channels.

From a financial forecast perspective, both City analysts and international brokerages maintain moderate bullish views. EPS is expected to grow at 5–7% in 2026, aligning with operational leverage gains. Investment banks like Barclays and HSBC continue to rate CCEP as “overweight,” particularly citing its ability to generate consistent shareholder value within the European context.

Investor themes to watch in 2026

• Stability of consumer staples in a high-interest rate world.
• Execution of R&D pipeline for product innovation and reformulation.
• Progress toward net-zero goals and meaningful updates along sustainability KPIs.
• Any M&A activity especially in emerging non-carbonated beverage markets or in vertical integration for packaging.

For investors and stakeholders alike, 2026 is shaping up to be pivotal. If CCEP continues to strike the balance between market responsiveness and long-term strategic depth, it may well extend its record of above-average returns into the new year and beyond, solidifying its place in UK-oriented global portfolios.