Coca-Cola To Complete Bottler Refranchising By Yearend; New Company Scoops Up Coke's Northeast Territories

Posted On: 5/25/2017

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TAGS: Coca-Cola Co., refranchising, Coke territories, Coca-Cola Northeast Territories, Coca-Cola Refreshments, Paul Mulligan, Fran McGorry, Coke bottling companies, Coca-Cola bottler, Liberty Coca-Cola Beverages LLC, Tri-State Metro Operating Unit

ATLANTA -- Coca-Cola Co. said it on track to complete the refranchising of its company-owned territories in the U.S. by yearend, with a new letter of intent for territories in the Northeast. Coca-Cola Refreshments executives Paul Mulligan and Fran McGorry are forming a new bottling company, Liberty Coca-Cola Beverages LLC, and have a signed a letter of intent for metropolitan New York, Philadelphia, most of New Jersey and part of Delaware, along with four production facilities. This area is known as the Tri-State Metro Operating Unit of Coca-Cola Refreshments, which is owned by Coca-Cola Co. Terms were not disclosed.

Mulligan has been president of Coca-Cola Refreshments since 2014. His previous experience in the system includes operations roles around the world. McGorry is president of the Tri-State Metro Operating Unit and will continue to be in charge of the territory. Prior to his current role, McGorry was president of the Philadelphia Coca-Cola Bottling Co. Mulligan and McGorry will be co-owners of the new Liberty Coca-Cola Beverages.

Including the Tri-State Metro Operating Unit, Coca-Cola has reached definitive agreements or signed letters of intent to refranchise bottling territories that account for approximately 80% of total U.S. bottler-delivered distribution volume, which equates to approximately 90% of total Coca-Cola Refreshments volume in North America. With this new letter of intent, 100% of the U.S. territory of CCR is under agreement.

Additionally, Coca-Cola has reached definitive agreements or signed letters of intent for all 51 cold-fill production facilities in the U.S. The Tri-State Metro Operating Unit has production facilities in Philadelphia, Moorestown, NJ, Maspeth, NY and Elmsford, NY.

"This is a critical milestone in a journey that dates back more than a decade," said Coca-Cola North America president Sandy Douglas Jr.