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ATLANTA — Coca-Cola Co. has signed letters of intent granting expanded territories to two U.S. bottlers.
The beverage giant said late Wednesday that it 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.
Also, Coca-Cola Co. has agreed in principle to grant expanded territories to a new expanding U.S. bottler, Clark Beverage Group, which will assume markets in Mississippi.
Coca-Cola Co. said the moves accelerate the implementation of its 21st Century Beverage Partnership Model and that the company is on track to refranchise half of company-owned U.S. bottler-delivered volume by the end of 2017.
Plans call for Coca-Cola Co. and the bottlers to collaborate on the implementation of key elements of the U.S. operating model, including more rational and contiguous operating territories; a grant of exclusive territory rights and the sale by Coca-Cola Refreshments of distribution assets and cold drink equipment; a more integrated information technology platform; and a finished goods model and a new beverage agreement that supports the evolving operating model.
“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,” stated Sandy Douglas, president of 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.”
Coca-Cola Co. noted that the new transactions are subject to the parties reaching definitive agreements. Financial terms were not disclosed.
