The Coca-Cola Company Announces Additional Letters of Intent with U.S. Bottling Partners
April 22 2015 - 8:15AM
Business Wire
Implementation of 21st Century Beverage
Partnership Model in U.S. Continues
Significant Step Toward Refranchising Half of
Company-Owned U.S. Bottler-Delivered Volume by the End of 2017
The Coca-Cola Company today announced that it has taken
additional steps toward the implementation of a 21st Century
Beverage Partnership Model in the United States.
As part of this model, The Coca-Cola Company has agreed in
principle with three U.S. bottlers to continue granting new,
expanded territories. These bottlers are Coca-Cola Bottling Company
High Country, Coca-Cola Bottling Company United and Swire Coca-Cola
USA.
Additionally, The Coca-Cola Company has agreed in principle to
the granting of expanded territories to four new expanding U.S.
bottlers. These bottlers are Atlantic Coca-Cola Bottling Company,
Chesterman Company, The Odom Corporation and Ozarks Coca-Cola
Bottling Company.
“We have made significant progress toward the implementation of
our 21st Century Beverage Partnership Model in the U.S., which
continues to strengthen our franchise system,” said Muhtar Kent,
Chairman and Chief Executive Officer, The Coca-Cola Company. “We
will move forward with our refranchising plans in the U.S. as we
implement a more agile, modern, customer-focused beverage
partnership model.”
Consistent with prior transactions, in the newly granted
territories The Coca-Cola Company and these bottlers will work
collaboratively to implement key elements of this evolving U.S.
operating model, including:
- More rational and contiguous operating
territories
- A grant of exclusive territory rights
and the sale by Coca-Cola Refreshments (CCR) of distribution assets
and cold drink equipment
- A finished goods model under which
production assets will remain with CCR
- An improved, more integrated
information technology platform
- A new beverage agreement that supports
the evolving operating model
“Today marks another significant milestone in the evolution of
our U.S. operations as we align for growth with partners that have
demonstrated success, taken a generational view and consistently
invested in capabilities and leadership,” said Sandy Douglas,
President, Coca-Cola North America. “These four new expanding
bottling partners – Atlantic, Chesterman, Odom and Ozarks – bring
deep local knowledge and have demonstrated both outstanding
commercial capabilities and consistent, sustainable success within
their communities.”
These new territories generally border these bottlers’ existing
territories, allowing each bottler to better service local
customers and provide more efficient execution.
- Coca-Cola Bottling Company High
Country will assume additional territory in South Dakota, North
Dakota (including the Fargo and Bismarck markets), and
Minnesota
- Coca-Cola Bottling Company
United will assume additional territory in Louisiana, including
the New Orleans and Shreveport markets, and territory in the
Tallahassee, Florida market
- Swire Coca-Cola USA will assume
additional territory in Arizona, including the Phoenix and Tucson
markets
- Atlantic Coca-Cola Bottling
Company will assume new territory in Iowa and southern
Minnesota
- Chesterman Company will assume
new territory in Nebraska and western Iowa, including the Omaha and
Lincoln markets
- The Odom Corporation will assume
new territory in the Hawaiian Islands including Oahu, Hawaii,
Kauai, and Molokai
- The Ozarks Coca-Cola Bottling
Company will assume new territory in Missouri, northern
Arkansas and southeast Kansas
The new transactions announced today are subject to the parties
reaching Definitive Agreements. The parties are committed to
working together to implement a smooth transition with minimal
disruption for customers, consumers and System associates.
Financial terms were not disclosed.
About The Coca-Cola
Company
The Coca-Cola Company (NYSE: KO) is the world's largest beverage
company, refreshing consumers with more than 500 sparkling and
still brands. Led by Coca-Cola, one of the world's most valuable
and recognizable brands, our Company's portfolio features 20
billion-dollar brands including, Diet
Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, POWERADE, Minute
Maid, Simply, Georgia, Dasani, FUZE TEA and Del Valle. Globally, we
are the No. 1 provider of sparkling beverages, ready-to-drink
coffees, and juices and juice drinks. Through the world's largest
beverage distribution system, consumers in more than 200 countries
enjoy our beverages at a rate of 1.9 billion servings a day. With
an enduring commitment to building sustainable communities, our
Company is focused on initiatives that reduce our environmental
footprint, support active, healthy living, create a safe, inclusive
work environment for our associates, and enhance the economic
development of the communities where we operate. Together with our
bottling partners, we rank among the world's top 10 private
employers with more than 700,000 system associates. For more
information, visit Coca-Cola Journey at www.coca-colacompany.com,
follow us on Twitter at twitter.com/CocaColaCo, visit our blog,
Coca-Cola Unbottled, at www.coca-colablog.com or find us on
LinkedIn at www.linkedin.com/company/the-coca-cola-company.
The Coca-Cola CompanyScott Williamson,
404-676-3288swilliamson@coca-cola.com
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