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The Coca-Cola Company today announced that it has taken additional steps
toward the implementation of a 21^st 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 21^st
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.
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