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Coca-Cola North America completes refranchising initiative

DBR Staff Writer Published 31 October 2017

Coca-Cola North America has wrapped up the company’s bottling-system refranchising initiative.

The company closed final deals with Liberty Coca-Cola Beverages, Reyes Coca-Cola Bottling and Swire Coca-Cola USA, returning ownership of US bottling operations to local partners.

Liberty Coca-Cola Beverages has closed its deal to buy territory from The Coca-Cola Company across the New York Tri-State Metro area.

Liberty Coca-Cola Beverages is a new bottler that started operating in New York, New Jersey and the metro Philadelphia area.

The new bottler’s areas of service includes the cities of Philadelphia and New York, part of Delaware, the state of New Jersey, Long Island, parts of Hudson Valley, NY, and Fairfield County, CT. Liberty Coca-Cola will operate four production facilities and ten distribution centers across the region.

Financial terms of the Liberty Coca-Cola Beverages deal are not being disclosed.

Reyes Coca-Cola Bottling took on new bottling territories in California and Nevada, which were earlier operated by Coca-Cola Refreshments.

Swire Coca-Cola, USA closed on a further production plant in Colorado, adding to its existing bottling operations across six Western states.

Coca-Cola North America’s refranchising plan will conclude with the completion of transactions in Canada and the US Virgin Islands, which are expected in the first half of next year. 

Coca-Cola North America president J. Alexander “Sandy” Douglas, Jr., said: “We are reshaping our business and accelerating our transformation to become a total beverage company.

“Our system is built to respond to consumers’ needs in a fast-moving and highly competitive environment. Returning the local part of our business to where it really belongs and will best perform – in the hands of local companies – is a key enabler of the exciting transformation and growth of our business.”

Coca-Cola’ said a fully refranchised system in the US finalizes the installation of its 21st Century Beverage Partnership Model.

The US Coca-Cola system now includes a range of independent bottlers, from multinational owners to decades-old, family-held operations.

The new system also operates on a new IT platform that improves efforts to digitize the Coca-Cola system


Image: Coca-Cola is trying to reinvent itself by selling its bottling operations to local partners. Photo: Courtesy of The Coca-Cola Company.