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Coca-Cola to complete refranchising of US territories by year end

Published 25 May 2017

Coca-Cola said it remains on track to complete refranchising of its US territories by the end of this year.

The company signed a letter of intent for Liberty Coca-Cola Beverages, a new venture between Coca-Cola Refreshments executives Paul Mulligan and Fran McGorry to take over the bottling of its products in a significant area of northeastern US.

The territories include metropolitan New York, Philadelphia, most of the state of New Jersey and part of Delaware, and four production facilities. 

This area is known as the Tri-State Metro Operating Unit of Coca-Cola Refreshments and is a unit of The Coca-Cola Company.

The Tri-State Metro Operating Unit president McGorry, will be the co-owner of the new Liberty Coca-Cola Beverages and will continue to be the top executive in charge of the territory. Previously, he served as the president of the Philadelphia Coca-Cola Bottling.

A definitive agreement will have to be reached, which will be followed by the closing. Coca-Cola says that it is on track to complete refranchising of its US territories by the year end.

Coca-Cola North America president J. Alexander “Sandy” Douglas Jr. said: “This is a critical milestone in a journey that dates back more than a decade.

“This important bottling territory will be in great hands under the leadership of Paul and Fran. They are experienced, locally respected operators who see many growth opportunities in the Tri-State market.”

The Coca-Cola Company remains on track to complete refranchising of its U.S. territories by the end of 2017. There are agreements or letters of intent for 100% of the U.S. territories of Coca-Cola Refreshments.

Coca-Cola started working with its bottling partners about 10 years ago with plans to develop a model that can evolve the system that can better serve the changing customer demands.

As part of this plan, the company acquired the North American territories of Coca-Cola Enterprises in 2010, which eventually led to the establishment of Coca-Cola Refreshments.

Presently, the company has signed letters of intent to refranchise bottling territories that account for about 80% of total US bottler-delivered distribution volume. This is equal to about 90% of total Coca-Cola Refreshments volume in North America. The latest letter of intent brings 100% of the US territory of Coca-Cola Refreshments under the agreement.

The Company also has reached definitive agreements or signed letters of intent for all 51 cold-fill production facilities in the United States. The Tri-State Metro Operating Unit has production facilities in Philadelphia, Moorestown, N.J., Maspeth, N.Y., and Elmsford, N.Y.

Image: Coca-Cola on the verge of completing new franchise plan in the US. Photo: Courtesy of The Coca-Cola Company.