15 May 2015
The Coca-Cola Company Announces Letters of Intent With Two U.S. Bottling Partners
The Coca-Cola Company continues to accelerate the implementation of a 21st Century Beverage Partnership Model in the United States by signing Letters of Intent with two U.S. bottlers.
The Coca-Cola Company has agreed in principle to grant additional expanded territories toCoca-Cola Bottling Co. Consolidated, which will assume markets in Delaware, the District of Columbia, Illinois, Indiana, Kentucky, Maryland, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia.
Additionally, The Coca-Cola Company has agreed in principle to grant expanded territories to a new expanding U.S. bottler, Clark Beverage Group, which will assume markets in Mississippi.
"As we've shared before, we continue to align our U.S. operations with highly capable partners of all sizes that have consistently invested for growth," said Sandy Douglas, President, Coca-Cola North America. "The announcement today with Coca-Cola Bottling Co. Consolidated and Clark Beverage Group reinforces our successful efforts to 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
- An improved, more integrated information technology platform
- A finished goods model and a new beverage agreement that supports the evolving operating model
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.
