The Coca-Cola Company to Refranchise Territory to Coca-Cola Bottling Co. Consolidated
June 15 2016 - 7:30AM
Business Wire
Letter of Intent Includes Territory Around
Memphis, Tenn., Plus Two Production Facilities
Consolidated and Coca-Cola Bottling Company
UNITED Agree to an Exchange of Facilities and Territories in
Portions of the Southeast United States
The Coca-Cola Company today announced a letter of intent to
refranchise territories to Coca-Cola Bottling Co. Consolidated.
The Coca-Cola Company expects to refranchise most of the
Memphis, Tenn., market unit to Charlotte, N.C.-based Consolidated.
This area includes portions of Tennessee, Mississippi and Arkansas,
including Little Rock. Consolidated also expects to acquire
production facilities in Memphis, Tenn., and West Memphis, Ark.
Separately, Consolidated has signed a letter of intent for a
small territory owned by The Coca-Cola Company that is centered on
Louisa, Ky., with operations that span into West Virginia.
In addition, a number of facilities and territories in the
Southeast will be exchanged under letters of intent involving
Consolidated, fellow bottler Coca-Cola Bottling Company UNITED and
the Coca-Cola Refreshments unit of The Coca-Cola Company.
The expected agreements will lead to the creation of more
contiguous territories for both Consolidated and UNITED in the
Southeast:
- Birmingham, Ala.-based UNITED will
acquire Consolidated’s Deep South Territory, which spans parts of
Georgia, Alabama, Florida and Mississippi. This territory includes
nine sales centers, plus a production facility in Mobile, Ala.
Currently, these operations are not geographically connected to
other Consolidated territories, while they are contiguous to UNITED
operations.
- UNITED will acquire Consolidated’s
Tennessee and Alabama territory that is serviced from its Florence,
Ala., sales center, along with Consolidated’s Panama City, Fla.,
territory. These areas are contiguous to UNITED
operations.
- Consolidated will acquire UNITED-owned
territories in South Carolina around the cities of Bluffton and
Spartanburg. These UNITED areas sit amidst Consolidated
territories.
“These agreements involving Consolidated and UNITED are another
important step in our ongoing refranchising initiative,” said J.
Alexander “Sandy” Douglas Jr., President, Coca-Cola North America.
“Consolidated’s agreement involving Memphis adds a major market to
their portfolio. Consolidated and UNITED have also agreed to create
more geographically contiguous operations for both companies in the
Southeast, which will improve the overall ability of the Coca-Cola
system to serve customers and consumers.”
On April 29, The Coca-Cola Company and Consolidated also closed
a previously announced agreement to refranchise territory centered
on Baltimore. This deal included production facilities in Baltimore
and Silver Spring, Md.
These agreements are part of a plan to refranchise all of The
Coca-Cola Company’s North American territories by the end of
2017.
21st Century Beverage Partnership Model
History
The Coca-Cola Company began working with its bottling partners a
decade ago on plans to develop a model that evolves the system to
serve the changing customer and consumer landscape, with a focus on
creating stronger system alignment. A critical step was the
Company’s acquisition of the North American territories of
Coca-Cola Enterprises in 2010.
Since the deal was closed, The Coca-Cola Company has accelerated
the implementation of the new model by strategically addressing the
bottling system, customer service, product supply and a common
information technology platform.
Ultimately, the Coca-Cola system in North America will be
comprised of economically aligned bottling partners that have the
capability to serve major customers, coupled with the ability to
maintain strong, local ties across diverse markets in the United
States and Canada.
So far, the Company has reached definitive agreements or signed
letters of intent to refranchise territories that account for
approximately 65% of bottler-delivered distribution volume and 43
of the 51 cold-fill production facilities in the United States.
The new transactions announced today are subject to The
Coca-Cola Company and the companies involved 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 are not
being 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 and more than 3,800 beverage choices.
Led by Coca-Cola, one of the world's most valuable and recognizable
brands, our company’s portfolio features 20 billion-dollar brands,
18 of which are available in reduced-, low- or no-calorie options.
Our billion-dollar brands include Diet Coke, Coca-Cola Zero, Fanta,
Sprite, Dasani, vitaminwater, Powerade, Minute Maid, Simply, Del
Valle, Georgia and Gold Peak. Through the world's largest beverage
distribution system, we are the No. 1 provider of both sparkling
and still beverages. More than 1.9 billion servings of our
beverages are enjoyed by consumers in more than 200 countries each
day. With an enduring commitment to building sustainable
communities, our company is focused on initiatives that reduce our
environmental footprint, 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160615005638/en/
The Coca-Cola CompanyScott Williamson,
404-676-3288swilliamson@coca-cola.com
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