Coca-Cola Co first announced plans to refranchise its bottling system in 2013

Coca-Cola Co first announced plans to refranchise its bottling system in 2013

The Coca-Cola Co has reported new agreements with bottlers as it continues its strategy to refranchise its bottling system in the US. 

The company announced new letters of intent with two bottlers. Coca-Cola also said the National Product Supply Group (NPSG) - which was formed to administer certain activities for member bottlers, including production of cold-fill beverages - is expanding.  

The letters of intent involve: 

  • Coca-Cola Bottling Company of Yakima, Washington, expects to add territory in Moses Lake, Washington. This is a portion of the Pacific Northwest territory that was previously announced under a letter of intent with Swire. Coca-Cola Refreshments (CCR), a subsidiary of The Coca-Cola Co, currently has exclusive distribution rights in this territory
  • Durham Coca-Cola Bottling Company of North Carolina expects to add territory in Sanford, North Carolina. CCR currently has exclusive distribution rights in this territory.

Meanwhile, NPSG expects to add Coca-Cola Beverages Florida and the newly-created Midwest Regional Product Supply Group to its line-up. 

Coca-Cola has also reached definitive agreements with Viking Coca-Cola Bottling Co for territories in parts of Minnesota, Wisconsin and Michigan as well as Great Lakes Coca-Cola Distribution to acquire production facilities in Alsip and Niles, Illinois, Eagan, Minnesota and Milwaukee. Great Lakes has also closed deals for seven distribution centres in the Midwest.

These agreements are part of a plan to refranchise all of The Coca-Cola Company's North American territories by the end of 2017. Coca-Cola first announced plans to return to a franchise model, instead of owning its bottlers, in 2013.