Coca-Cola UNITED Working Closely With The Coca-Cola Company on Expanded Territory

BIRMINGHAM, Ala., April 16, 2013 – The Coca-Cola Company and Coca-Cola Bottling Company UNITED, headquartered in Birmingham, Alabama, today announced that they have taken a significant first step in the implementation of a 21st century beverage partnership model.

Under the new model, The Coca-Cola Company and five U.S. bottlers, including Coca-Cola UNITED, have agreed in principle to create a stronger U.S. business model through the granting of new, expanded territories. The four other bottlers are Coca-Cola Bottling Company Consolidated, Swire Coca-Cola USA, Coca-Cola Bottling Company High Country and Corinth Coca-Cola Bottling Works Inc.

“A strong franchise system has always been the competitive advantage of the Coca-Cola business globally, and today we are accelerating the transformation of our U.S. system in ways that will establish a clear path to achieve our 2020 Vision,” said Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company.

In the newly granted territories, The Coca-Cola Company and Coca-Cola UNITED will work collaboratively to implement key elements of this evolving U.S. operating model, including:

• More rational and contiguous operating territories
• A finished goods model under which each bottler will be acquiring territory rights and operations including distribution assets and cold drink equipment
• Production assets in new territories to remain with The Coca-Cola Company
• An improved, more integrated information technology platform
• A new beverage agreement that supports the evolving operating model

 

“Since 1899, we have had the privilege of distributing exceptional brands, refreshing consumers, serving customers and supporting communities in the Southeast where we live and work,” said Claude Nielsen, Chief Executive Officer of Coca-Cola Bottling Company UNITED. “We look forward to building an even stronger and more aligned System, as we continue to provide an outstanding portfolio of beverages to our consumers and customers.”

Coca-Cola UNITED will assume territories in Alabama and portions of northwest Florida, north and west Georgia and southeastern Tennessee. These new territories will include geographies that border UNITED’s existing territories, allowing Coca-Cola UNITED to better service local customers and provide more efficient execution.

New Territories: 

• Dothan, Ala., Montgomery, Ala., Oxford, Ala., Scottsboro, Ala., Tuscaloosa, Ala., Pensacola, Fla., Valparaiso, Fla., West Point, Ga.

The transactions announced today are subject to the parties reaching definitive agreements by the end of 2013, with closings expected during 2014. The parties anticipate a seamless transition with minimal disruption for customers, consumers and system associates.

About Coca-Cola Bottling Company United, Inc.:

Coca-Cola Bottling Company UNITED, Inc., founded in 1902, is the third largest Coca-Cola bottling company in the United States headquartered in Birmingham, Alabama. Coca-Cola United currently operates in the following locations: Augusta, Ga.; Baton Rouge, La.; Birmingham, Ala.; Brunswick, Ga.; Chattanooga, Tenn.; Cullman, Ala.; Gulfport, Miss.; Hattiesburg, Miss.; Lafayette, La.; Lake Charles, La.; McComb, Miss.; McRae, Ga.; Milledgeville, Ga.; Savannah, Ga.; Spartanburg, S.C.; Statesboro, Ga.; Waycross, Ga.; and West Alabama.

Coca-Cola UNITED is engaged principally in the production, marketing and distribution of
Coca-Cola, Diet Coke, Sprite, Fanta, Dasani water, POWERADE and other beverages under exclusive franchises from The Coca-Cola Company and other soft drink manufacturers.