ATLANTA -- Coca-Cola Co. has signed letters of intent to grant territories in the greater Chicago and in central Florida to two of its bottling partners. Coke agreed to award the Chicago territory to J. Christopher and M. Jude Reyes of Reyes Holdings LLC. The central Florida territory, which includesTampa and St. Petersburg, is given to Troy Taylor, who will be the chairman and chief executive of a newly established Florida bottling company.
The transactions are subject to the parties reaching definitive agreements during 2014. Financial terms were not disclosed.
Reyes Holdings is one of the largest global providers of food and beverage distribution services. Its operations span North, Central and South America, as well as Europe, the Middle East and Asia Pacific. The company delivers more than 800 million cases of beer and food products annually from 120 warehouses.
Taylor has been involved in the Coca-Cola bottling system for nearly 20 years as a strategic advisor. He is also founder and managing partner of Spinel Investment Co.
Last April, Coca-Cola announced that it had signed letters of intent with five U.S. bottlers to strengthen its U.S. business model by granting new territories and expanding some. The five bottlers are Coca-Cola Bottling Co. Consolidated, Coca-Cola Bottling Co. United Inc., Swire Coca-Cola USA, Coca-Cola Bottling Co. High Country and Corinth Coca-Cola Bottling Works Inc.
Coke closed on the High Country acquisition at the end of 2013 and said it expects to reach definitive agreements with the other four bottlers in the near future and close on the transactions later this year.
In all of the newly granted territories, Coke said it will work collaboratively with the bottlers to implement key elements of its evolving U.S. operating model. They include exclusive territory rights and the sale by Coca-Cola Refreshments of distribution assets and cold drink equipment. Coke is also moving toward a finished goods model under which production assets will remain with CCR to facilitate future implementation of a national product supply system.