Progress in Coca-Cola’s North American refranchising initiative
The Coca-Cola Company announced several agreements that continue the Company’s progress in reshaping its North American bottling system.
Coca-Cola announced new letters of intent involving two bottlers. The National Product Supply Group (NPSG) – which was formed to administer key activities for member bottlers, including production of cold-fill beverages – also announced that it is expanding.
The new letters of intent involve that Coca-Cola Bottling Company of Yakima, WA, expects to add territory in Moses Lake, WA. This is a portion of the Pacific Northwest territory that was previously announced under a letter of intent with Swire Coca-Cola, USA. Coca-Cola Refreshments (CCR), a subsidiary of The Coca-Cola Company, currently has exclusive distribution rights in this territory.
Durham Coca-Cola Bottling Company of North Carolina expects to add territory in Sanford, NC. CCR currently has exclusive distribution rights in this territory.
The NPSG – which has five current members and a sixth, previously announced incoming member – expects to add to its membership. The two additional members are Coca-Cola Beverages Florida and the newly created Midwest Regional Product Supply Group, or Midwest RPSG. The Midwest RPSG will be led by Rosemont, IL-based Great Lakes Coca-Cola Distribution and is anticipated to include other Midwestern bottlers.
The bottler also confirmed progress that Viking Coca-Cola Bottling Co. of St. Cloud, MN, has reached a definitive agreement for territories in parts of Minnesota, Wisconsin and Michigan. Furthermore the Great Lakes Coca-Cola Distribution has reached a definitive agreement to acquire production facilities in Alsip and Niles, IL, Eagan, MN and Milwaukee. Great Lakes has also closed deals for seven distribution centers in the Midwest.
These agreements are part of a plan to refranchise all of The Coca-Cola Company’s North American territories by the end of 2017.
