The 21st Century US Beverage Partnership Model Reaches Completion!
Final Deals close with Liberty Coca-Cola Beverages, Reyes Coca-Cola Bottling and Swire Coca-Cola USA, returning ownership of U.S. Bottling Operations from The Coca-Cola Company to its local partners. With the closing of these transactions, the Company and its U.S. Bottling partners have worked together to execute 60 transitions, which include 350 distribution centers, over 50 production facilities, over 55,000 employees and over 1.3 billion physical cases of volume. Below are highlights of transactions within the last six months. If you are a CCBA Member, you may also login to view previous articles that followed the milestones with this initiative since 2014.
ABARTA Coca-Cola Beverages (ACCB) has acquired 12 sales and distribution facilities with territories across Pennsylvania. ACCB already handles sales and distribution in the Lehigh Valley, Downingtown (PA) and Cleveland, Ohio. In addition to its acquired territories in Pittsburgh, Greensburg, Ebensburg, Harrisburg, Lancaster, Reading, DuBois, Milton, Mt. Pocono, (PA) and Fairmont, West Virginia; Abarta now includes distribution facilities in Houston and Erie, Pennsylvania. With this expansion, Abarta Coca-Cola has tripled in size, growing from roughly 550 employees to more than 1,500 along with anticipated corresponding growth in projected volume.
Corinth Coca-Cola Bottling Works has completed territory expansion into Central and Northeast Arkansas and the Missouri Bootheel. The addition of this territory expands Corinth’s footprint by almost 40 percent and increases its employees by almost 15 percent. This is Corinth’s third expansion.
Coca-Cola Bottling Company of Northern New England has closed its transaction to acquire territory across eight states in the Northeast, including all of New England, upstate and western New York, and a portion of Pennsylvania. CCNNE will now own and manage operations in several metropolitan areas, including Boston, Massachusetts, Providence, Rhode Island and Hartford, Connecticut; as well as Buffalo, Rochester, Syracuse, and Albany, New York. In addition to its legacy footprint that includes a state-of-the-art manufacturing center and ten sales and distribution centers around the region, CCNNE will add two manufacturing plants and 19 distribution centers that were formerly part of Coca-Cola Refreshments (CCR), a subsidiary of The Coca-Cola Company. CCNNE has grown from 1,380 to almost 4,000 associates, and expects to sell 55 million more cases of beverages annually as a result of the expansion, bringing total volume to about 82 million cases per year. CCNNE will have manufacturing facilities in Londonderry, NH, East Hartford, CT, and Needham Heights, MA.
Coca-Cola Bottling Co. Consolidated completed acquisition of distribution territories in and around Memphis, Tennessee, including portions of northwestern Mississippi and eastern Arkansas; as well as Spartanburg and Bluffton, South Carolina in exchange for transferring distribution territory in Florence, Alabama, south-central Tennessee and Laurel, Mississippi. Consolidated also acquired distribution territory in central and southern Arkansas in exchange for transferring distribution territory in parts of southern Alabama, southwestern Georgia, southeastern Mississippi, northwestern Florida and Somerset, Kentucky. Manufacturing facilities in Memphis, Tennessee and West Memphis, Arkansas were acquired in exchange for transferring a manufacturing facility in Mobile, Alabama.
Swire Coca-Cola, USA closed on an additional production facility in Denver, Colorado, adding to its existing bottling operations across 13 Western states. Swire also completed its acquisition of distribution and production facilities in Arizona, Washington, Oregon and Idaho during the last few months. This sixth production plant increases Swire Coca-Cola’s workforce by almost 130 employees, bringing its total head count to almost 6,700.
Coca-Cola Bottling Company UNITED culminated a four year expansion with the acquisition of 10 new sales and distribution territories, as well as a production facility. The new territories include Florence, Leroy, Mobile and Robertsdale, Alabama; Bainbridge, Columbus and Sylvester, Georgia; Laurel and Ocean Springs, Mississippi; and Panama City, Florida. The production facility is in Mobile, Alabama. UNITED had already completed its acquisition of territories and bottling operations in metro Atlanta and north and central Georgia, including Athens, Dublin, Gainesville, Jasper, Lawrenceville, Macon, and Rome, plus two bottling plants in College Park and Marietta. This expansion has more than tripled the overall size of UNITED and added thousands of new associates to its family. UNITED also plans to invest more than $9 million in infrastructure, facility improvements and fleet throughout these new territories.
Great Lakes Coca-Cola Bottling, (GLCC) completed the transaction for its Grand Rapids, MI production facility. Additionally, the parent company of Great Lakes Coca-Cola, Reyes Holdings LLC, entered into a Letter of Intent with TCCC to assume territories in California and Nevada.
Reyes Coca-Cola Bottling officially took on new bottling territories in California and Nevada, including the major metropolitan markets of Los Angeles, San Francisco, San Diego and Las Vegas, along with three bottling operation facilities (which were previously operated by CCR.) Reyes added to its existing operations in parts of six Midwestern states, including the cities of Chicago, Detroit, Minneapolis and Milwaukee.
New Bottler, Liberty Coca-Cola Beverages LLC, began operations in New York, New Jersey and the metro Philadelphia area. This is the former Tri-State Metro Operating Unit of Coca-Cola Refreshments (CCR). Liberty Coca-Cola Beverages also includes production facilities in Philadelphia, Moorestown, NJ, Maspeth, NY, and Elmsford, NY.
The U.S. Coca-Cola system is now made up of a diverse array of independent bottlers, from multinational owners to decades-old, family-held operations. This new system is working to reinvent the future of the business, especially in key areas such as portfolio diversification, packaging innovation, production, procurement, technology and pricing. Most new or expanding bottlers are hiring more people and investing in plants and equipment. The new system also operates on a new IT platform that enhances efforts to digitize the Coca-Cola system and significantly improves the ability to coordinate and manage information across bottling partners at both local and national levels. Coca-Cola North America’s refranchising plan will conclude with the completion of transactions in Canada and the U.S. Virgin Islands, which are anticipated in the first half of 2018.