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Coke Consolidated Pacts To Swap Distribution Territories With Coca-Cola Refreshments

Posted On: 6/17/2016

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TAGS: vending, Coca-Cola Bottling Co. Consolidated, independent Coca-Cola bottler, Coca-Cola Co., Coca-Cola Refreshments USA Inc.

CHARLOTTE, NC -- Coca-Cola Bottling Co. Consolidated, the nation's largest independent Coca-Cola bottler, said it has signed a nonbinding letter of intent with Coca-Cola Co. (Atlanta) to exchange CCBC's distribution territory in the southern parts of Alabama, Georgia and Mississippi and its manufacturing facility in Mobile, AL, for distribution territory currently served by Coca-Cola Refreshments USA Inc., a wholly owned Coke subsidiary.

Those territories cover parts of Arkansas, Tennessee and northwestern Mississippi; and the agreement includes two manufacturing facilities currently owned by CCR in Memphis, TN, and West Memphis, AR. CCBC also said that it plans to acquire additional distribution territory in Louisa, KY, and southwestern West Virginia.

The proposed transactions would provide exclusive distribution rights for CCBC in several major markets including Little Rock, West Memphis and southern Arkansas; Memphis, TN; and Louisa, KY. In turn, the company would relinquish distribution rights in territory that includes Mobile, Leroy and Robertsdale, AL; Columbus, Sylvester and Bainbridge, GA; and Laurel and Ocean Springs, MS.

CCBC also reported that it has signed a non-binding letter of intent with Coca-Cola Bottling Co. United Inc. (Birmingham, AL) to exchange its distribution territory in Florence, AL; south central Tennessee; and Panama City, FL, for distribution territory currently served by United in Spartanburg and Bluffton, SC.

The company recently expanded its distribution territory in parts of Tennessee, Kentucky, Indiana, Virginia, Delaware, Maryland and the District of Columbia. It is continuing to work towards a definitive agreement with Coca-Cola Co. for the remainder of the proposed territory expansion described in the previously announced letters of intent from May 2015 and February 2016, including distribution territories in parts of Ohio, Indiana, Illinois, Kentucky and West Virginia.

CCBC also has recently completed its acquisition of manufacturing facilities in Sandston, VA, and Silver Spring and Baltimore, MD. It reports that it is continuing to work towards a definitive agreement with the Coca-Cola Co. for the remainder of the manufacturing facility acquisitions described in previously-announced letters of intent from September 2015 and February 2016. These include plants located in Indianapolis and Portland, IN, and Cincinnati and Twinsburg, OH.

The transactions are expected to be consummated by the end of 2017.