News

Coca-Cola Expands Territories of 3 Bottlers in 5 States; Atlanta Metro Goes to Coke United

 

Coca-Cola "continues to accelerate the pace" of its territory refranchising initiative, co noted, as it expands territories of Coca-Cola Beverages Florida, Coca-Cola Bottling Co United (based in Alabama) and Viking Coca-Cola Bottling Co in Minn. "Together with our bottling partners, we are changing the landscape of our US system," said Sandy Douglas, prexy of Coca-Cola North America. Batch of latest agreements "further advances our efforts to balance national scale and local capability," he added. KO territories transitioned to date "represent almost 40% of total US bottler-delivered distribution volume," noted co. And as in last announced batch of deals, production facilities are included. 

Tampa, Fla-based Coca-Cola Bev Fla adds territory in southeast Fla including Ft Lauderdale, Hollywood, Miami and West Palm Beach. Birmingham, Ala-based Coca-Cola Bottling Co United gets additional territories in north and central Georgia, incl KO's hometown metro Atlanta, along with Athens, Macon and Rome. St. Cloud, Minn-based Viking will expand into parts of northern Minn and Wis and "a portion" of Mich (which seems to signal adjustment to earlier announced deal ceding entire state to Reyes - BBI, Oct 21). Coca-Cola also said it's reached definitive agreements to sell production facilities with 3 National Product Supply System bottlers. Besides new territories, "United will acquire production facilities in College Park and Marietta, Ga, Montgomery, Ala and Cleveland, Tenn." Coca-Cola Bottling Co Consolidated will acquire facilities in Baltimore, Silver Springs, Md, and Sandston, Va. Swire Coca-Cola USA is taking over facilities in Phoenix and Denver. Recall this represents recent about-face by KO, which at one point was planning to retain as much production responsibility itself; now it's eager to spin off CCR production facilities to its new and expanding franchisees, figuring they're more efficient and getting big chunks of capital off its own books.Beverage Business Insights
  • Posted in: News
  • December 10, 2015