Coca-Cola Bottling Co. Consolidated agrees to expand US bottling territory
Coca-Cola Bottling Co. Consolidated has agreed to expand distribution territory to Cleveland, Ohio.
The bottler has signed a non-binding letter of intent with The Coca-Cola Company for exclusive distribution rights in various northern parts of the state, currently held by another Coca-Cola bottler.
The acquisition of the territory will be facilitated by Coca-Cola Refreshments USA, a subsidiary of Coca-Cola, and will allow Coca-Cola Consolidated to further expand its coverage.
Since May 2014, Coca-Cola Consolidated has expanded its distribution territory in 11 US states, and acquired manufacturing plants in Maryland, Ohio and Virginia.
It has also been working on an agreement with Coca-Cola Bottling Company United to exchange distribution territory in south-central Tennessee, northwest Alabama and northwest Florida for distribution territory in and around Spartanburg and Bluffton, South Carolina. The proposal was made back in last June.
As per the letter of intent, Coca-Cola Bottling Consolidated and The Coca-Cola Company have also agreed that Coca-Cola Refreshments’ distributed territory in West Virginia, including Wheeling and Fairmont sales centres will no longer be part of the distribution territory expansion transaction that was previously announced in last February. Instead, they will be transferred by The Coca-Cola Company to another Coca-Cola bottler.
Coca-Cola Bottling Consolidated is continuing to work towards definitive agreements with The Coca-Cola Company for the remaining transactions described in the last February’s letter of intent, including the expansion of distribution territories in parts of northern Ohio and the purchase of a manufacturing facility in Twinsburg, Ohio.