US: Coke may buy Philadelphia bottler
The soft drinks giant said today (1 September) that it had agreed a "potential purchase" of a further stake in Brucephil, the owner of Philadelphia Coca-Cola Bottling Co.
The deal, which is subject to regulatory approval and "certain other terms and conditions" would give Coke a majority stake in the bottler, up from its current 31% shareholding. Financial details were not disclosed and the only indication Coke gave for when the deal could be completed was "no later than early 2009".
A Coca-Cola North America spokesman told just-drinks that Brucephil's owner, J. Bruce Llewellyn, had approached the company to buy up the shares in Philly Coke, which accounts for 2% of Coke volumes in the US.
He declined, however, to comment on how the deal would benefit Coke. "It's premature to speculate on the impact on our business, or on what we might do, at this point," he told just-drinks from Atlanta.
There are signs that soft drinks companies are seeking more control over their bottling systems. In April, Cadbury Schweppes' moved to take full ownership of the Dr Pepper/Seven Up Bottling Group. In July, PepsiCo's largest bottler, Pepsi Bottling Group, formed a manufacturing joint venture to distribute products in the north-west of the US.
However, the Coke spokesman denied the Philly Coke deal was part of a wider move to gain greater control over the company's distribution network.
"This is a particular situation, it's a specific agreement based on a unique set of circumstances. We've said that over the long-term we do not see ourselves owning bottling companies."
The announcement of major restructuring and 3,500 job losses at Coca-Cola Enterprises (CCE) says as much about The Coca-Cola Company as it does about its largest bottler. Annette Farr examines the und...
Mexican soft drinks bottler Embotelladoras Arca saw profits rise 14% last year thanks to growing volumes across the business....
US consumers will soon know how much caffeine is contained in Coca-Cola Classic. From May, The Coca-Cola Company will include caffeine content on the product's labelling as part of an industry initiat...
The Coca-Cola Company has sealed its move to take full control of its bottler in the Philippines....
The Coca-Cola Company has bought two Moldovan soft drinks brands from Efes Breweries International (EBI) for an undisclosed sum....
The drinks arm of Cadbury Schweppes is performing better as it gets smaller, the company said today (20 February)....
Coca-Cola Amatil (CCA) may sell its South Korean bottling business after its operations there hit earnings during 2006....
Odwalla has lined up a line of bottled waters for the US, containing natural fruit flavours....
- Brown-Forman's march on premium whisk(e)y -Comment
- Will US consolidation leave craft alcohol exposed?
- Are consumers getting tired of consuming?
- Should Boston Beer Co put up the For Sale sign?
- Where does AB InBev see the future of beer?
- Brown-Forman to buy BenRiach Distillery Co
- AB InBev snaps up Italy's Birra del Borgo
- Smirnoff Ice Electric flavours - NPD
- Bacardi rolls out new global Martini ad - video
- US craft beer to hit saturation soon - Koch
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Emerging Drinks Industry Trends