News

Arca Continental joins US Coca-Cola bottling system, creates joint venture

Most popular

Mangrove MD warns of coronavirus impact on spirits

Advice for brewers in the time of COVID-19

Provenance and quality not enough for spirits - II

What's coming up in beer in 2020? - Predictions

Coronavirus special - US Distilled Spirits Council

MORE

Latin American Coca-Cola bottler Arca Continental is to set up a joint venture with US-based Coca-Cola Bottling Co United as the Coca-Cola Co continues its refranchising operations. 

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 will take a 20% equity stake in the newly-created Arca Continental Beverages Business. In exchange for the stake, Coca-Cola Co will contribute the Southwest operating unit of Coca-Cola Refreshments.

The Southwest unit includes territories in Texas and parts of Oklahoma, New Mexico and Arkansas. The new, US-based company will also include all of Arca Continental's existing beverage businesses in Latin America. Arca Continental will hold the majority stake and will continue to be publicly traded on Mexico's stock exchange.

As part of the deal, United will acquire from Coca-Cola the majority of remaining territory in Oklahoma, which will then be contributed, along with an undisclosed sum, to its US JV with AC Beverages. 

Separately, Orzarks Coca-Cola Bottling Co has signed a letter of intent with Coca-Cola to acquire territories in northwest Arkansas and small areas in Kansas and Oklahoma.

"Arca Continental is a strong Coca-Cola bottler that has done a great job developing and sharing best practices in its long-standing history," said Coca-Cola North America president Sandy Douglas. "Arca Continental will be a tremendous partner with United in serving a major region of the US, and the companies will benefit from having contiguous borders for their territories. Coca-Cola is also pleased to gain an additional equity stake in an international bottler that is vital to our long-term success."

The JV will become a member of the National Product Supply Group (NPSG). The NPSG is governed by a board comprising representatives from its current members, which are Coca-Cola North America, Coca-Cola Refreshments, Coca-Cola Bottling Co Consolidated, Coca-Cola Bottling Company United and Swire Coca-Cola, USA.

The AC Beverages/United operation will own 11 cold-fill production facilities.

Coca-Cola first announced plans to return to a franchise model, instead of owning its bottlers, in 2013.


Related Content

How did Arca Continental perform in 2018? - results data

How did Arca Continental perform in 2018? - results data...

How has Arca Continental performed in YTD 2019? - results data

How has Arca Continental performed in YTD 2019? - results data...

CEO switch at Arca Continental as Francisco Garza Egloff calls time

CEO switch at Arca Continental as Francisco Garza Egloff calls time...

Coca-Cola Co optimistic for 2017 despite Q1 stagnation - results

Coca-Cola Co optimistic for 2017 despite Q1 stagnation - results...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?