SPAIN: Coca-Cola extends Spanish franchises to 20 years
Soft drinks company, Coca Cola Enterprises Inc, is to extend its five-year renewable contracts with Spanish franchisees to 20 years, according to an announcement from Coca Cola Espana, the Spanish division of Coca Cola. The US company is to restrict the right it currently has to choose whether or not to renew a contract, giving more stability to the seven bottling companies and allowing them to undertake long term investment. Two of the companies, Rendelsur and Cobega, are planning to build new bottling plants in Spain. The five other bottling companies contracted to produce and distribute Coca-Cola brands in Spain are Asturbega, Begano, Casbega, Colebega and Norbega.
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