ATLANTA – May 13, 2015 – 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 to Coca-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.
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, Dasani, FUZE TEA 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.