Letter of Intent Includes Territory Around Memphis, Tenn., Plus Two
Consolidated and Coca-Cola Bottling Company UNITED Agree to an
Exchange of Facilities and Territories in Portions of the Southeast
ATLANTA–(BUSINESS WIRE)–The Coca-Cola Company today announced a letter of intent to refranchise
territories to Coca-Cola Bottling Co. Consolidated.
The Coca-Cola Company expects to refranchise most of the Memphis, Tenn.,
market unit to Charlotte, N.C.-based Consolidated. This area includes
portions of Tennessee, Mississippi and Arkansas, including Little Rock.
Consolidated also expects to acquire production facilities in Memphis,
Tenn., and West Memphis, Ark.
Separately, Consolidated has signed a letter of intent for a small
territory owned by The Coca-Cola Company that is centered on Louisa,
Ky., with operations that span into West Virginia.
In addition, a number of facilities and territories in the Southeast
will be exchanged under letters of intent involving Consolidated, fellow
bottler Coca-Cola Bottling Company UNITED and the Coca-Cola Refreshments
unit of The Coca-Cola Company.
The expected agreements will lead to the creation of more contiguous
territories for both Consolidated and UNITED in the Southeast:
Birmingham, Ala.-based UNITED will acquire Consolidated’s Deep South
Territory, which spans parts of Georgia, Alabama, Florida and
Mississippi. This territory includes nine sales centers, plus a
production facility in Mobile, Ala. Currently, these operations are
not geographically connected to other Consolidated territories, while
they are contiguous to UNITED operations.
UNITED will acquire Consolidated’s Tennessee and Alabama territory
that is serviced from its Florence, Ala., sales center, along with
Consolidated’s Panama City, Fla., territory. These areas are
contiguous to UNITED operations.
Consolidated will acquire UNITED-owned territories in South Carolina
around the cities of Bluffton and Spartanburg. These UNITED areas sit
amidst Consolidated territories.
“These agreements involving Consolidated and UNITED are another
important step in our ongoing refranchising initiative,” said J.
Alexander “Sandy” Douglas Jr., President, Coca-Cola North America.
“Consolidated’s agreement involving Memphis adds a major market to their
portfolio. Consolidated and UNITED have also agreed to create more
geographically contiguous operations for both companies in the
Southeast, which will improve the overall ability of the Coca-Cola
system to serve customers and consumers.”
On April 29, The Coca-Cola Company and Consolidated also closed a
previously announced agreement to refranchise territory centered on
Baltimore. This deal included production facilities in Baltimore and
Silver Spring, Md.
These agreements are part of a plan to refranchise all of The Coca-Cola
Company’s North American territories by the end of 2017.
21st Century Beverage Partnership Model
The Coca-Cola Company began working with its bottling partners a decade
ago on plans to develop a model that evolves the system to serve the
changing customer and consumer landscape, with a focus on creating
stronger system alignment. A critical step was the Company’s acquisition
of the North American territories of Coca-Cola Enterprises in 2010.
Since the deal was closed, The Coca-Cola Company has accelerated the
implementation of the new model by strategically addressing the bottling
system, customer service, product supply and a common information
Ultimately, the Coca-Cola system in North America will be comprised of
economically aligned bottling partners that have the capability to serve
major customers, coupled with the ability to maintain strong, local ties
across diverse markets in the United States and Canada.
So far, the Company has reached definitive agreements or signed letters
of intent to refranchise territories that account for approximately 65%
of bottler-delivered distribution volume and 43 of the 51 cold-fill
production facilities in the United States.
The new transactions announced today are subject to The Coca-Cola
Company and the companies involved 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 are not being 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 and more than 3,800 beverage choices. Led by Coca-Cola, one of
the world’s most valuable and recognizable brands, our company’s
portfolio features 20 billion-dollar brands, 18 of which are available
in reduced-, low- or no-calorie options. Our billion-dollar brands
include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, vitaminwater,
Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak. Through
the world’s largest beverage distribution system, we are the No. 1
provider of both sparkling and still beverages. More than 1.9 billion
servings of our beverages are enjoyed by consumers in more than 200
countries each day. With an enduring commitment to building sustainable
communities, our company is focused on initiatives that reduce our
environmental footprint, 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.
The Coca-Cola Company
Scott Williamson, 404-676-3288