The Coca-Cola Co to hand over US production sites in supply chain shake-up
Coca-Cola is changing its US bottler system
The Coca-Cola Co is to consolidate control of nine US production sites as it continues to overhaul its bottler network in the country.
The company said the sites, worth an estimated US$380m, will go to a newly-created group formed of three existing independent bottlers. Coca-Cola Bottling Co Consolidated, Coca-Cola Bottling Company United, and Swire Coca-Cola USA will comprise the National Product Supply System NPSS, along with the Coca-Cola-owned bottler Coca-Cola Refreshments (CCR) and corporate division Coca-Cola North America.
The company said the move will lower costs and enable new investment in Coca-Cola's US bottler network. The change adds to the ongoing redistribution of Coca-Cola's bottler territories to independent bottlers.
“Our US operating model continues to become stronger, more aligned and more competitive,” said Coca-Cola CEO Muhtar Kent. “Today we are taking further action to enable profitable growth for our entire US system.”
CCR will divest the nine production facilities as follows:
- Consolidated will acquire production facilities in Sandston, Virginia, Baltimore and Silver Spring, Maryland, Indianapolis, and Portland, Indiana, and Cincinnati, Ohio
- United will acquire a production facility in New Orleans, Louisiana
- Swire will acquire production facilities in Phoenix, Arizona, and Denver, Colorado
The switch is expected to take place between 2016 and 2018.
The Coca-Cola bottling system is comprised of The Coca-Cola Company and a vast network of bottling and distribution partners....
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