Reyes Holdings Expands Footprint In Coca-Cola System's California, Nevada Territories

Posted On: 5/17/2017

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TAGS: Coca-Cola Co., Reyes Holdings LLC, Coke bottlers, Coca-Cola bottler territories, Martin-Brower, Reinhart FoodService, Reyes Beverage Group, Coca-Cola Refreshments, Coca-Cola Enterprises, Coca-Cola refranchising

ATLANTA -- One of the world's largest food and beverage distribution companies has signed a letter of intent with Coca-Cola Co. for territories in California and Nevada. Reyes Holdings LLC's agreement with Coke gives it access to such major metropolitan markets as Los Angeles, San Francisco, San Diego and Las Vegas. Financial terms were not disclosed.

Headquartered in Rosemont, IL, Reyes Holdings is an American foodservice wholesaler and distributor. Its divisions include McDonald's distributor Martin-Brower, food company Reinhart FoodService and beer distributor Reyes Beverage Group. In 2016 it was the 12th-largest private company in the United States.

Reyes Holdings signed its first deal for Coca-Cola territory in February 2014. It went on to launch Great Lakes Coca-Cola Distribution LLC, which serves parts of six states in the Midwest, including Chicago, Detroit, Minneapolis and Milwaukee.

Its latest agreement involves the West Operating Unit of Coca-Cola Refreshments, which is part of Atlanta-based Coca-Cola Co. Reyes Holdings already has extensive operations in California and Nevada, including Reyes Beverage Group and Martin-Brower. With the addition of more territory, Reyes Holdings will serve as a Coca-Cola bottler in parts of eight states.

The agreement is part of a plan to refranchise all of Coca-Cola Co.'s U.S. bottling territories by the end of 2017. The beverage giant began working with its bottling partners a decade ago on plans to develop a model that evolves the system to serve the changing customer and consumer landscape, with a focus on creating stronger system alignment. A big step was its acquisition of the North American territories of Coca-Cola Enterprises in 2010, which led to the establishment of Coca-Cola Refreshments.

Since the closing of the transaction involving the North American territories of Coca-Cola Enterprises, Coca-Cola has accelerated the implementation of the new model by addressing the bottling system, customer service, product supply and a common information technology platform. Ultimately, the North America Coca-Cola system will be comprised of economically aligned bottling partners that have the capability to serve major customers with the ability to maintain local ties across diverse markets in the U.S. and Canada.

Including the West Operating Unit, Coca-Cola has reached definitive agreements or signed letters of intent to refranchise bottling territories that account for about 75% of total U.S. bottler-delivered distribution volume, which equates to more than 80% of total Coca-Cola Refreshments volume. The company also has reached definitive agreements or signed letters of intent for 47 of the 51 cold-fill production facilities in the U.S.