Company Remains on Track to Refranchise Half of Company-Owned U.S.
Bottler-Delivered Volume by End of 2017
ATLANTA–(BUSINESS WIRE)–The Coca-Cola Company today announced it has signed letters of intent
with three U.S. bottlers to grant expanded distribution territories in
seven states as part of its ongoing efforts to refranchise half of
Company-owned U.S. bottler-delivered volume by the end of 2017.
In each territory, The Coca-Cola Company will grant exclusive rights to
these bottlers for the sale and distribution of bottler-delivered
Coca-Cola beverages. In addition, Coca-Cola Refreshments, the
Company-owned U.S. bottler, will sell its sales and distribution assets
to the expanding local bottling partner. New letters of intent provide
Coca-Cola Beverages Florida, based in Tampa, will assume
additional territory in north Florida including Brevard, Daytona,
Jacksonville, Gainesville and Orlando.
Great Lakes Coca-Cola Distribution, L.L.C., based in Chicago,
will assume additional territory including the state of Michigan, the
majority of Wisconsin including Milwaukee, southern Minnesota
including Minneapolis and portions of northeast Iowa and northern
Illinois adjacent to its Chicago territory.
Atlantic Coca-Cola Bottling Company, based in Atlantic, Iowa,
will assume new territory in southeastern Iowa, including Cedar Rapids
and Quad Cities, western Illinois and northeastern Missouri.
Consistent with previous transactions, The Coca-Cola Company and these
bottlers will work collaboratively to benefit from more rational and
contiguous operating territories across the United States; an improved,
more integrated information technology platform across bottlers; and a
new beverage agreement that supports the Coca-Cola system’s evolving
U.S. operating model.
“We continue the evolution of our U.S. operations as two of our newest
partners, Great Lakes Coca-Cola and Coca-Cola Beverages Florida, are
granted additional territory, and Atlantic Coca-Cola expands its
footprint,” said Sandy Douglas, President, Coca-Cola North America. “We
are confident that we are building a model that is modern, agile and
consumer and customer focused. The progress announced today continues
our efforts to balance national scale and local capability, and will
help us increase our leadership and competitive advantage in the U.S.
Additionally, The Coca-Cola Company today announced that it has reached
definitive agreements with Coca-Cola Bottling Company United, Swire
Coca-Cola USA, Coca-Cola Bottling Company High Country, and The Ozarks
Coca-Cola Bottling Company for territories announced during April and
May 2015, and with Coca-Cola Bottling Co. Consolidated for several of
the territories announced at that time as well. Some of these
transactions are expected to close in 2015 and others in 2016.
In total, and including the letters of intent announced today,
territories transitioned to-date or included in agreements represent
more than 30% of total U.S. bottle-delivered volume.
The letters of intent 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
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 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 Company
Scott Williamson, 404-676-3288