Coca-Cola is contemplating ending contracts with eight German bottling companies, according to local press reports. German daily Handelsblatt said yesterday that the company's European head, Sandy Allan, is threatening to terminate the existing contracts, citing company sources.

According to an advance copy of a report to be published in the newspaper today, Coke and the bottling companies are unable to agree on how to draw up distribution areas in the country and streamline the loss-making German operations.