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Coca-Cola Co Refranchises Canadian Bottling Operations

TORONTO -- Coca-Cola Co. said Larry Tanenbaum and Junior Bridgeman have signed a non-binding letter of intent to acquire the company's Canadian bottling and distribution business, Coca-Cola Refreshments Canada (CCRC). Financial terms were not disclosed. The transaction is expected to close in the second half of 2018. The acquirer will be a Canadian-based joint venture between Tanenbaum, a prominent Canadian businessman and philanthropist, and Bridgeman, a former NBA player, entrepreneur and current presi...

March 15, 2018

TORONTO -- Coca-Cola Co. said Larry Tanenbaum and Junior Bridgeman have signed a non-binding letter of intent to acquire the company's Canadian bottling and distribution business, Coca-Cola Refreshments Canada (CCRC). Financial terms were not disclosed. The transaction is expected to close in the second half of 2018.

The acquirer will be a Canadian-based joint venture between Tanenbaum, a prominent Canadian businessman and philanthropist, and Bridgeman, a former NBA player, entrepreneur and current president and chief executive of Kansas City-based Heartland Coca-Cola Bottling Co.

Tanenbaum's business, The Kilmer Group, has built businesses throughout Canada, in areas as diverse as sports and media, and real estate and infrastructure. He is chairman of Maple Leaf Sports & Entertainment, the owners of the Toronto Maple Leafs, Toronto Raptors, Toronto FC, Toronto Argonauts and the Air Canada Centre. He is also chairman of the board of governors of the National Basketball Association a governor of the National Hockey League and Major League Soccer.

Bridgeman joined the Coke bottling system in 2017 with the formation of Heartland Coca-Cola, covering territories in Kansas, Missouri and Southern Illinois. Prior to that, he created and led Manna Inc. (Louisville, KY), one of the largest restaurant franchise operators in the U.S. He also had a 12-year career as a professional basketball player in the NBA.

CCRC employs approximately 5,800 associates and operates five production facilities and more than 50 sales and distribution centers. CCRC conducts business in all 10 provinces and three territories.

This letter of intent initiates the final step to complete the refranchising of all of Coca-Cola Co.'s company-owned bottling operations in North America. In October 2017, the company announced the completion of refranchising in the United States.

Coca-Cola Co. 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 critical step was the company's 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 Coca-Cola system in North America will be comprised of bottling partners that have the capability to serve major customers, coupled with the ability to maintain strong, local ties across diverse markets in the U.S. and Canada.