The FTSE 100 looks set to get a new stock next year and it’s no minnow. In fact, were it to join the UK’s blue-chip index today, the firm would slip straight into the top 30 due to its considerable size.

The stock in question is Coca-Cola Europacific Partners (LSE: CCEP), which currently has a £27.7bn market-cap. That’s more than the likes of Tesco and Vodafone!

Shares of Coca-Cola Europacific Partners have been on the London Stock Exchange since 2019. Yet I’d say the firm’s still largely unknown by most UK investors.

So why’s it suddenly set to gatecrash the FTSE 100 from nowhere? And is this a stock I’d consider buying?

Listings shake-up

In July, the Financial Conduct Authority (FCA) rolled out the biggest reform of UK listings rules in decades in a bid to boost London’s stagnating stock market.

One big change was the merging of standard and premium listing segments into a single category. This makes it much easier for companies to become eligible for inclusion in FTSE indexes, which is what’s happened here with Coca-Cola Europacific Partners.

It’s expected to join the Footsie in March 2025.

The share price has performed well, rising 22% year to date and nearly 60% over five years.

What does the company do exactly?

This is the world’s largest Coca-Cola bottler based on revenue. It makes, moves and sells drinks such as Coca-Cola, Fanta, Sprite, and Monster in 31 countries, including the UK, Spain, Australia, and Indonesia.

It’s a significant supplier of beverages to major fast-food chains, including McDonald’s and Yum! Brands (which owns KFC and Pizza Hut).

In total, it serves nearly 600m consumers.

Strong growth and a dividend

The first thing I look for in a potential investment in how fast the company’s been growing. In this case, quite quickly (barring the pandemic).

The operating margin’s a solid 12.8% and there’s a well-covered dividend. The yield‘s only 2.9%, but the payout’s been growing at a compound annual growth rate of 10.4% since 2019.

Some considerations

In the first nine months of 2024, revenue rose 10.2% to €15.2bn. However, the firm lowered its full-year revenue forecast after a mixed Q3, from 4% to 3.5% growth, though it kept its guidance for 7% growth in operating profit.

It said cash-strapped consumers have started eating at home rather than dining out. This situation could worsen. Also, there was weaker volume performance in Indonesia, a Muslim-majority country, due to consumer boycotts of Western brands over the Middle East conflict.

Another thing is that the stock isn’t particularly cheap. It’s trading on a price-to-earnings (P/E) ratio of 18.5 based on this year’s forecast earnings. That’s a premium to the wider FTSE 100.

My move

Overall, there’s a lot to like here. The company is solidly profitable, with a portfolio of top-tier brands that give it strong pricing power. Analysts are bullish, with 13 out of 19 rating the stock a Strong Buy.

The firm’s markets range from Norway to the Philippines, presenting a good mix of developed and emerging economies.

However, I have one problem. I’ve just invested in another FTSE 100 bottler, namely Coca-Cola HBC, and I don’t want two of them in my portfolio.

If this wasn’t the case though, I’d consider buying some shares.