Is CCH.L (Coca-Cola HBC AG) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CCH.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 1 of 4 compliance screens. Coca-Cola HBC AG's core business activity was found to be non-compliant.

Coca-Cola HBC AG is a leading strategic bottling partner of The Coca-Cola Company, primarily operating across Europe and parts of Africa. While its core portfolio consists of famous sparkling soft drinks like Coca -Cola, Fanta, and Sprite, the company has diversified significantly into other categories. This includes energy drinks like Monster, coffee brands like Costa, and notably, a portfolio of premium spirits and alcoholic beverages which it distributes in certain markets. For Muslim investors, CCH.L is currently classified as Not Halal (Haram) due to a failure in the business activity screening. Although the company is categorized under 'Non-Alcoholic Beverages,' its involvement in the distribution and sale of alcohol—specifically premium spirits and beer—violates the core shariah requirement for permissible business activities. Even though the financial ratios for debt and interest- bearing securities are well within the permissible thresholds, the nature of the revenue source takes precedence. Financially, the company maintains a strong balance sheet from an Islamic perspective, with interest-bearing debt at 23.6% of its market capitalization, sitting comfortably below the 33% limit. Additionally, its cash and short-term securities account for only 15.6% of its market cap, indicating efficient capital deployment rather than hoarding cash in interest-bearing accounts . However, these positive financial metrics are nullified by the impermissible nature of its alcohol distribution arm. Investors should be aware that while the vast majority of revenue comes from halal soft drinks, the explicit strategic inclusion of alcohol distribution makes this stock ineligible for shariah-compliant portfolios. Unless the company divests its alcohol distribution segments or scholars determine the revenue contribution is negligible enough to be purified (which is rarely the case for direct alcohol sales), this stock remains off-limits. Coca-Cola HBC AG operates in the Consumer Defensive sector under the Beverages - Non-Alcoholic industry and is headquartered in Steinhausen, CH. The company is led by CEO Zoran Bogdanovic and employs approximately 33,000 people.

CCH.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. CCH.L passed 3 of these 4 screens.

CCH.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.