Coca-Cola Europacific Partners PLCCCEP Coca-Cola Europacific Partners PLC fair value $91–$140

Coca-Cola Europacific Partners (CCEP) is an entrenched, high-quality bottler generating roughly $2 billion in annual free cash flowFree cash flowOperating cash flow minus capital expenditures. The cash a business generates after maintaining and growing its asset base — the closest accounting proxy for owner-economics.. While it operates with structurally lower margins than franchisors like KO, its local monopoly on distribution and vast scale provide a wide economic moatMoatA durable structural advantage that protects long-term returns on capital from competition. Sources include network effects, switching costs, intangible assets, cost advantages, and efficient scale.. It is a predictable compounder actively returning capital through dividends and buybacks.

• Exclusive territorial distribution agreements for
  Exclusive territorial distribution agreements for top global beverage brands.
• Massive local distribution density creating
  Massive local distribution density creating insurmountable scale advantages.
• Cycle upside
  Normalized supply chains and highly stable consumer staples demand driving margin expansion.