The Putin Threat Looming Over Coca-Cola HBC and the David Family

A report in the Russian press and a decision by Vladimir Putin were enough to wipe billions of euros off Coca-Cola HBC’s market value in a single day, exposing the David family, one of the Group’s major shareholders, to one of the most serious risks facing its operations in Russia.

The company’s shares plunged 14.12% on the Athens Stock Exchange and 17.88% in London, with the Group’s market capitalization falling from €21.95 billion to €18.85 billion, erasing €3.1 billion in a single trading session. Vladimir Putin’s decision to place Japan Tobacco International’s Russian operations under temporary administration coincided with revelations that a similar request had been submitted concerning Multon, the Russian business of Coca-Cola HBC.

At the center of the developments is Russian company Bochkari, which, according to Kommersant, has asked the Russian president to place Multon and Multon Partners under temporary external administration, proposing that Bochkari itself take control of the businesses. The request, submitted in mid-October, has been forwarded to the Russian government, although no corresponding presidential decree has been issued so far.

For its part, Coca-Cola HBC clarified in a statement issued on Thursday evening that it had received no notification from the Russian government regarding any changes to its operations in the country. The company also emphasized that its Russian business has operated autonomously since 2022 and that the Group does not rely on revenue or capital from Russia to finance its operations outside the country or service its debt.

Nevertheless, the financial stakes are substantial. Coca-Cola HBC maintains a significant presence in Russia, with the business generating €1.61 billion in revenue in 2025. As of July 3, 2026, the Group held €1.04 billion in cash in the country, subject to restrictions on transferring funds outside Russia. According to estimates by INFOLine-Analytics, Multon’s total value stands at approximately 245 billion rubles, including substantial cash reserves.

The Risk of Losing Control

This is a mechanism that Moscow has been using since 2023 to target assets belonging to companies from countries it designates as “unfriendly.” At this stage, legal ownership is not formally transferred, but control of the assets passes to an administrator appointed by the Russian authorities. The same regime has previously been applied to Western groups, including France’s Danone, Denmark’s Carlsberg and Finland’s Fortum. In the cases of Danone and Carlsberg, their Russian operations were ultimately sold to Russian buyers.

The most recent precedent was Nestlé last September, when Vladimir Putin decided to place the Swiss group’s Russian operations under temporary external administration. The decision also triggered significant turbulence in Coca-Cola HBC shares, which fell 5.77% to €50.60 on September 18, as investors feared that a similar move could affect the bottling group.

The difference is that, at the time, Coca-Cola HBC came under pressure because of a broader risk affecting Western multinationals operating in Russia. Today, however, there is a specific request—according to the Russian newspaper’s report—submitted to the Russian president to place Multon under the same regime, giving the threat a new level of significance.

How Russia Became a Major Market for Coca-Cola HBC

For Coca-Cola HBC, the Greek-rooted bottling group that has been associated with the David and Leventis families for decades and is currently chaired by Anastassis David, the threat concerns a market in which it has invested consistently since the early 2000s.

The Group established its presence in Russia in 2001 through the acquisition of The Coca-Cola Company’s bottling operations, followed by the acquisition of Multon in 2005. Over the following years, Russia developed into one of the Group’s largest markets.

The scale of that investment was evident in 2011, when George David attended the inauguration of the Coca-Cola system’s 15th production plant in Russia, located in Rostov-on-Don. Around the same time, a $3 billion investment programme was announced for the following five years.

Russia’s invasion of Ukraine in 2022 dramatically changed the situation.

That year, Coca-Cola HBC’s sales volumes in Russia declined by 41.4%, while the Group recorded exceptional charges of €127.4 million related to the war, primarily reflecting impairments in the Russian market.

Nevertheless, operations continued. Following The Coca-Cola Company’s decision to withdraw its international brands, Coca-Cola HBC shifted its focus to local brands such as Dobry and Rich, maintaining a significant presence in the country.

The Russian business recovered over the following years, with sales volumes reaching 413.7 million unit cases in 2025, up 2.6% compared with 2024.

Despite the restrictions imposed following the outbreak of the war, Russia remains a market that makes a substantial contribution to Coca-Cola HBC’s financial performance.

A Sudden Reversal Following Strong Nine-Month Results

The latest turmoil came immediately after Coca-Cola HBC reported strong results for the first nine months of the year and upgraded its guidance for organic revenue growth in 2026, which management now expects to be slightly above the previously indicated 6%–7% range.

At the same time, the Group maintained its guidance for organic operating profit growth of 8%–10%.

Nevertheless, Eurobank Equities considers the market reaction excessive, arguing that the sharp decline in the share price effectively prices in an almost complete loss of the Russian business.

The brokerage values Coca-Cola HBC’s Russian operations at approximately €3.5 billion, compared with INFOLine-Analytics’ estimate of €2.7 billion. It notes that the €800 million difference between the two valuations is equivalent to approximately €2.20 per share.