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Coca-cola V-ECON

ECONOMIC AUDIT UPDATED 2026-06-11
V-ECON Score 7.00 /10 B Coca-cola — BDS-1000 649
V-ECON 7.00

Evidence-only forensic audit. Scoring happens downstream — see the main dossier for the composite assessment.

V-ECON Audit — Coca-Cola

Supply Chain & Sourcing Relationships

Central Bottling Company (CBC), also known as Coca-Cola Israel, holds the exclusive Coca-Cola franchise in Israel 1. This is a contractual franchise and concentrate-supply relationship, not an equity stake held by The Coca-Cola Company (TCCC) in CBC. Through its fully owned subsidiary, the Central Beverage Distribution Company, CBC operates a regional distribution center and cooling houses in the Atarot Industrial Zone in occupied East Jerusalem 12. The Atarot Industrial Zone is classified by UN bodies and human rights organisations as an Israeli industrial settlement constructed on land expropriated from Palestinian communities north of Jerusalem 2.

Tabor Winery, a wholly-owned CBC subsidiary, produces wines from grapes sourced from vineyards located on occupied land in West Bank settlements (Alon Shvut, Gush Etzion) and the occupied Syrian Golan (Ortal, Keshet) 3. The National Beverage Company (NBC) operates as Coca-Cola’s independent franchisee in the West Bank and Gaza 4. NBC’s $25 million plant in Gaza, opened in 2016, has been destroyed as of September 2024 5. MIGA (World Bank) provided $2.3 million, 10-year insurance coverage for NBC’s Gaza expansion against expropriation and war/civil disturbance risks in 2020 6.

Prigat products (CBC subsidiary) enter the US market via Kayco, a kosher food importer and distributor that is not a TCCC subsidiary 1. No public evidence was identified linking Mehadrin, Hadiklaim, or Galilee Export directly to TCCC, Prigat, or Gat Foods. No public evidence was identified of CBC’s specific banking relationships with Israeli banks involved in settlement financing.

Product Origin, Labeling & Regulatory Compliance

Tabor Winery’s wines are labeled “Product of Israel” despite sourcing from occupied West Bank and Golan Heights vineyards 3. No public record of CBC or Tabor Winery demonstrably complying with, or being formally cited for non-compliance with, EU settlement-labeling rules was identified. TCCC’s published Supplier Guiding Principles and Human Rights Policy do not contain a specific clause addressing goods originating from occupied or contested territories 1.

US-market Passover Coke is produced by domestic US bottlers using cane or beet sugar as a kosher-for-Passover substitute for corn syrup. No product-import or labeling compliance issue associated with Israeli-origin Passover Coke was substantiated 1.

Investment, Capital & Financial Exposure

TCCC participated in a $10 million Series B funding round for Bringg, an Israeli logistics technology company, in March 2017 7. Bringg subsequently raised additional rounds ($12M in 2022), and Coca-Cola remains listed as a “strategic partner” with no public exit announcement 8. The Bridge startup commercialisation programme was established by TCCC in Tel Aviv in 2014. PitchBook lists the status as “Inactive” / “Out of Business” with last investment in May 2022 9.

TCCC does not hold a direct equity stake in CBC. CBC is a privately held Israeli company controlled by the Wertheim family 1. No public evidence was identified of TCCC holding Israeli sovereign bonds or Israel-focused investment funds as disclosed portfolio positions in reviewed SEC filings or annual reports 1. Bank Hapoalim and Bank Leumi have financed settlement activities including the Jerusalem Light Rail, Maale Adumim shopping complex, and Design City mall 10. No specific evidence of CBC’s banking relationships was found.

Operational Presence & Market Activity

CBC operates bottling plants within Israel proper (inside the Green Line) and subsidiary facilities including Prigat juice processing, Tara Dairy, and Neviot water bottling 1. CBC’s operational headquarters is in Bnei Brak, Israel 1. In 2024, Tel Aviv District Court ruled that CBC must pay additional tax for deemed royalty payments to TCCC. The Israel Tax Authority determined a 12.5% royalty rate is embedded in concentrate pricing, and “special relationships” exist between CBC and Coca-Cola. Additional tax liability was described as “hundreds of millions of shekels” 11.

The NBC Gaza franchise plant has faced severe operational constraints and has been destroyed 5. The broader conflict context from October 2023 onward has affected the operational environment for Palestinian-territory beverage operations.

Corporate Structure & Foundational Ties

The Coca-Cola Company was founded in Atlanta, Georgia, USA in 1886 and is incorporated in Delaware. It is not an Israeli-founded or Israeli-origin entity. CBC was established as TCCC’s Israeli franchisee and is a separately incorporated Israeli private company — it is not a TCCC subsidiary 1.

David Wertheim holds approximately 62.99% of CBC shares, with Reuven Becher, Gil Orion, and Chen Amir each holding 12.33%. Nir Levinger serves as CEO 1. Moshe “Muzi” Wertheim, who acquired the Coca-Cola franchise in 1967, served in the Palmach pre-state forces, fought in the War of Independence, and served in the Mossad. He died in 2016 12.

The Arab League boycotted Coca-Cola from 1966 to 1991 following TCCC’s decision to grant a franchise to an Israeli operator. In 1997, the Government of Israel’s Economic Mission publicly honoured Coca-Cola for its “continued support of Israel” during the boycott period 1. No public evidence of Israeli state ownership in TCCC or CBC, government-appointed board members at TCCC, or formal designation of CBC as critical national infrastructure was identified. CBC was fined NIS 62.7 million (2017) by the Israel Competition Authority for antitrust violations, indicating an arm’s-length regulatory relationship 1.

Profit Repatriation & Economic Contribution

TCCC does not publicly break out Israel as a standalone revenue line in its SEC filings or annual reports. Israel falls within the broader EMEA (Europe, Middle East & Africa) operating segment 1. Under the franchise model, CBC pays TCCC concentrate and syrup fees and franchise royalties. The primary financial flow is from CBC (Israel) to TCCC (USA/Atlanta). The 2024 Israeli court ruling established that a 12.5% deemed royalty rate is embedded in concentrate pricing 11.

CBC is documented as a dominant force in the Israeli food and beverage market, with its multi-category portfolio — spanning carbonated beverages, juices (Prigat), dairy (Tara), and water (Neviot) — making it one of the largest FMCG conglomerates operating in Israel 1. No public evidence was identified of an Israeli government report or independent industry assessment formally designating CBC as critical infrastructure or a named sector anchor in official publications 1.

End Notes

Footnotes

  1. https://www.whoprofits.org/companies/company/4081 ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16

  2. https://www.alhaq.org/cached_uploads/download/2020/06/02/atarot-settlement-interactive-1591084307.pdf ↩ ↩2

  3. https://www.whoprofits.org/companies/company/4073 ↩ ↩2

  4. https://www.coca-colacompany.com/about-us/coca-cola-system/national-beverage-company ↩

  5. https://www.reuters.com/business/retail-consumer/coke-pepsi-boycott-over-gaza-lifts-muslim-countries-local-sodas-2024-09-04 ↩ ↩2

  6. https://www.miga.org/press-release/miga-insures-national-beverage-companys-expansion-gaza-strip ↩

  7. https://www.dcvelocity.com/articles/28689-bringg-lands-10-million-investment-from-coca-cola-and-partners ↩

  8. https://en.globes.co.il/en/article-israeli-delivery-logistics-co-bringg-raises-12m-1001219832 ↩

  9. https://pitchbook.com/profiles/investor/113589-37 ↩

  10. https://www.banktrack.org/project/illegal_israeli_settlements ↩

  11. https://www.taxand.com/our-thinking/insights/israeli-coca-cola-ruling-expands-the-arms-length-principle ↩ ↩2

  12. https://en.globes.co.il/en/article-israel-coca-cola-owner-moshe-wertheim-dies-1001149562 ↩