Coca-Cola Signs LoI With Three U.S. Bottlers To Grant Expanded Distribution

(RTTNews) - Coca-Cola Co. (KO) said that it has signed letters of intent with three U.S. bottlers to grant expanded distribution territories in seven states as part of its ongoing efforts to refranchise half of Company-owned U.S. bottler-delivered volume by the end of 2017.

In each territory, The Coca-Cola Company will grant exclusive rights to these bottlers for the sale and distribution of bottler-delivered Coca-Cola beverages. In addition, Coca-Cola Refreshments, the Company-owned U.S. bottler, will sell its sales and distribution assets to the expanding local bottling partner.

Coca-Cola Beverages Florida, based in Tampa, will assume additional territory in north Florida including Brevard, Daytona, Jacksonville, Gainesville and Orlando.

Great Lakes Coca-Cola Distribution, L.L.C., based in Chicago, will assume additional territory including the state of Michigan, the majority of Wisconsin including Milwaukee, southern Minnesota including Minneapolis and portions of northeast Iowa and northern Illinois adjacent to its Chicago territory.

Atlantic Coca-Cola Bottling Company, based in Atlantic, Iowa, will assume new territory in southeastern Iowa, including Cedar Rapids and Quad Cities, western Illinois and northeastern Missouri.

Additionally, The Coca-Cola Company announced that it has reached definitive agreements with Coca-Cola Bottling Company United, Swire Coca-Cola USA, Coca-Cola Bottling Company High Country, and The Ozarks Coca-Cola Bottling Company for territories announced during April and May 2015, and with Coca-Cola Bottling Co. Consolidated for several of the territories announced at that time as well. Some of these transactions are expected to close in 2015 and others in 2016.

In total, and including the letters of intent announced today, territories transitioned to-date or included in agreements represent more than 30% of total U.S. bottle-delivered volume.

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.