Coca-Cola Reveals LOI, Definitive Agreements On Territory Expansion

(RTTNews) - Coca-Cola Co. (KO) Wednesday announced new letters of intent involving two bottlers and several definitive agreements.

The National Product Supply Group or NPSG created to administer key activities for member bottlers, including production of cold-fill beverages said it is planning to expand.

Coca-Cola Bottling Co. of Yakima, Washington, in a letter of intent plans to add territory in Moses Lake, Washington, which was previously under a letter of intent with Swire Coca-Cola, USA. Coca-Cola Refreshments, a subsidiary of Coca-Cola has exclusive distribution rights in this territory.

Durham Coca-Cola Bottling Co. of North Carolina expects to add territory in Sanford, N.C. CCR currently has exclusive distribution rights in this territory.

NPSG will be adding one more member to make its memberships six. 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, Ill.-based Great Lakes Coca-Cola Distribution and is anticipated to include other Midwestern bottlers.

Furtheer, the beverage giant said Viking Coca-Cola Bottling Co. of St. Cloud, Minn., has reached a definitive agreement for territories in parts of Minnesota, Wisconsin and Michigan. Great Lakes Coca-Cola Distribution has reached a definitive agreement to acquire production facilities in Alsip and Niles, Ill., Eagan, Minn. and Milwaukee. Great Lakes has also closed deals for seven distribution centers in the Midwest.

The company has reached definitive agreements or signed letters of intent to refranchise territories that account for approximately 65 percent of total U.S. bottler-delivered distribution volume, which equates to 71 percent of total Coca-Cola Refreshments volume.