Coca-Cola Refreshments Executives Paul Mulligan
and Fran McGorry to Form New Bottler to Operate Territory that
Includes Metropolitan New York, Philadelphia and the State of New
Jersey
The Coca-Cola Company is moving closer to completing the
refranchising of its Company-owned territories in the United
States, thanks to a new letter of intent involving a significant
area of the Northeast.
Coca-Cola Refreshments executives Paul Mulligan and Fran McGorry
are joining together to form a new bottling company called Liberty
Coca-Cola Beverages LLC. They have signed a letter of intent for
territories that include metropolitan New York, Philadelphia, most
of the state of New Jersey and part of Delaware, plus four
production facilities. This area is known as the Tri-State Metro
Operating Unit of Coca-Cola Refreshments, which is a unit of The
Coca-Cola Company.
Mulligan and McGorry are experienced veterans of the Coca-Cola
system. Mulligan has served as president of Coca-Cola Refreshments
since 2014. His previous experience in the system includes
leadership roles in operations around the world. He will be
co-owner of the new Liberty Coca-Cola Beverages.
McGorry is president of the Tri-State Metro Operating Unit. He
will be co-owner of Liberty Coca-Cola Beverages and will continue
to be the top executive in charge of the territory. Prior to his
current role, McGorry’s career included serving as president of the
Philadelphia Coca-Cola Bottling Co. He is a native of Philadelphia
and has strong, local connections throughout the Tri-State
area.
The next step is a definitive agreement, followed by a
closing.
The Coca-Cola Company remains on track to complete refranchising
of its U.S. territories by the end of 2017. There are agreements or
letters of intent for 100% of the U.S. territories of Coca-Cola
Refreshments.
“This is a critical milestone in a journey that dates back more
than a decade,” said J. Alexander “Sandy” Douglas Jr., President,
Coca-Cola North America. “This important bottling territory will be
in great hands under the leadership of Paul and Fran. They are
experienced, locally respected operators who see many growth
opportunities in the Tri-State market.”
“Becoming a Coca-Cola franchise owner is an honor and a
privilege, with a responsibility and challenge we respect,”
Mulligan said.
“I have been part of the Coca-Cola family for 30 years, and we
see this as a great opportunity to accelerate the business while
being an integral part of the local community,” McGorry said.
21st Century Beverage Partnership Model
History
This agreement is the latest element of an ongoing plan to
refranchise all of The Coca-Cola Company’s U.S. bottling
territories.
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, which led to the establishment of
Coca-Cola Refreshments.
Since the closing of the transaction involving the North
American territories of Coca-Cola Enterprises, 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.
Including the Tri-State Metro Operating Unit, the Company has
reached definitive agreements or signed letters of intent to
refranchise bottling territories that account for approximately 80%
of total U.S. bottler-delivered distribution volume, which equates
to approximately 90% of total Coca-Cola Refreshments volume in
North America. With this new letter of intent, 100% of the U.S.
territory of CCR is under agreement. The Company also has reached
definitive agreements or signed letters of intent for all 51
cold-fill production facilities in the United States. The Tri-State
Metro Operating Unit has production facilities in Philadelphia,
Moorestown, N.J., Maspeth, N.Y., and Elmsford, N.Y.
Mulligan, McGorry and The Coca-Cola Company 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, offering over 500 brands to people in more than 200
countries. Of our 21 billion-dollar brands, 19 are available in
lower- or no-sugar options to help people moderate their
consumption of added sugar. In addition to our namesake Coca-Cola
drinks, some of our leading brands around the world include: AdeS
soy-based beverages, Ayataka green tea, Dasani waters, Del Valle
juices and nectars, Fanta, Georgia coffee, Gold Peak teas and
coffees, Honest Tea, Minute Maid juices, Powerade sports drinks,
Simply juices, smartwater, Sprite, vitaminwater, and Zico coconut
water. At Coca-Cola, we’re serious about making positive
contributions to the world. That starts with reducing sugar in our
drinks and continuing to introduce new ones with added benefits. It
also means continuously working to reduce our environmental impact,
creating rewarding careers for our associates and bringing economic
opportunity wherever we operate. Together with our bottling
partners, we employ more than 700,000 people around the world. For
more information, visit our digital magazine Coca-Cola Journey at
www.coca-colacompany.com, and follow The Coca-Cola Company on
Twitter, Instagram, Facebook and LinkedIn.
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version on businesswire.com: http://www.businesswire.com/news/home/20170524005575/en/
The Coca-Cola CompanyScott Williamson,
404-676-3288swilliamson@coca-cola.com
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