The Company Reached Six New Definitive Agreements and Completed Four Closings Involving Territory and Production Plants Across the United States During the Third Quarter and Start of the Fourth Quarter
North America Refranchising Plan Remains on Track for Completion in 2017
ATLANTA, Oct. 26, 2016 – The
The Company has completed four closings since it provided an update when second quarter earnings were announced July 27. The most recent closings all stem from expected transactions that were previously disclosed:
Coca-ColaBottling Co. of Atlantic, Iowa, closed on additional territory in Iowa, plus areas in Minnesota, Wisconsin, Illinois and Missouri, including six distribution centers in Iowa and one in Illinois.
- Great Lakes
Coca-ColaDistribution of Rosemont, Ill., closed on one distribution center in Wisconsin and two in Minnesota, plus production plants in Eagan, Minn., and Milwaukee.
Coca-Cola, USA, a subsidiary of Swire Pacific Limited’s Beverages Division, closed on seven distribution centers in two states: Arizona and New Mexico.
Coca-ColaBottling Co. of St. Cloud, Minn., closed on facilities in Duluth, Minn., and Ashland, Wis., along with surrounding franchise territory in Minnesota, Wisconsin and Michigan.
Coca-Cola also announced six definitive agreements, all signed during the third quarter or early fourth quarter. A definitive agreement, or DA, follows a letter of intent and is the final step prior to closing:
Coca-Colasigned a DA that was later closed in the quarter. The territory involved is noted above.
- Coca-Cola Beverages Florida, based in Tampa, signed a DA for additional territory in north and south Florida, including nine distribution centers and four production facilities in Jacksonville, Tampa, Orlando and Hollywood.
- Coca-Cola Bottling Co. Consolidated, based in Charlotte, N.C., signed a DA for 14 distribution centers in five states: Illinois, Indiana, Ohio, Kentucky and West Virginia. Consolidated also signed a DA for three production plants in Cincinnati, Indianapolis and Portland, Ind.
- Coca-Cola Bottling Company UNITED Inc., headquartered in Birmingham, Ala., signed a DA for a production facility in Montgomery, Ala.
Coca-ColaUNITED previously acquired distribution rights for the Montgomery market and surrounding territories in 2014.
- Coca-Cola of Durango-Farmington, based in Durango, Colo., signed a DA for territory in Gallup, N.M.
- The Odom Corp., based in Bellevue, Wash., signed a DA for territory in Hawaii, including five distribution centers and a production plant in Honolulu. Odom is an expanding bottler with existing territory in Alaska.
In addition, three bottlers intend to join the Midwest Regional Product Supply Group, or Midwest RPSG. The Midwest RPSG is part of the National Product Supply Group, or NPSG, which was formed to administer key product supply activities for member bottlers in order to strengthen the U.S.
The new members are:
- Coca-Cola Bottling Company High Country of Rapid City, S.D.;
Coca-ColaBottling Company, based in Springfield, Mo.
21st Century Beverage Partnership Model History
These agreements are part of a plan to refranchise all of The
Since the closing of the transaction involving the North American territories with
So far, the Company has reached definitive agreements or signed letters of intent to refranchise territories that account for approximately 65% of total U.S. bottler-delivered distribution volume, which equates to 71% of total
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
More on Journey
Coca-ColaCompany Announces Pricing Terms of Tender Offer
- 2017 Annual Meeting of Shareowners Preliminary Vote Results
The Board of Directors of The
Coca-ColaCompany Declares Regular Quarterly Dividend
Coca-ColaCompany Announces the Further Extension of the Consent Solicitation and Tender Offer for Certain Notes
- Coca-Cola brings on Chefs Aarón Sánchez and Roblé Ali to talk Taste, Flavor and Variety of Meal Pairings