THE COCA-COLA COMPANY SIGNS LETTER OF INTENT TO IMPLEMENT A NATIONAL PRODUCT SUPPLY SYSTEM IN THE UNITED STATES
Regional Producing Bottlers to Optimize System Production
Coca-Cola Bottling Co. Consolidated, Coca-Cola Bottling Co. United, Swire Coca-Cola USA,
and Coca-Cola Refreshments to Coordinate Efficient Operation of Production Assets
Atlanta, September 24, 2015 – The Coca-Cola Company today took another significant step toward building a stronger, more streamlined production system in its flagship market by announcing the formation of a new National Product Supply System (“NPSS”) in the United States. The mission of the NPSS will be to facilitate optimal operation of the U.S. product supply system for Coca-Cola bottlers in order to:
- Achieve the lowest optimal manufactured and delivered cost for all bottlers in the Coca-Cola system
- Enable system investment to build sustainable capability and competitive advantage
- Prioritize quality, service and innovation in order to successfully meet and exceed customer and consumer requirements
Under the new NPSS, three existing independent producing bottlers, Coca-Cola Bottling Co. Consolidated (“Consolidated”), Coca-Cola Bottling Company United (“United”), and Swire Coca-Cola USA (“Swire”), as well as the Company-owned Coca-Cola Refreshments (“CCR”) along with Coca-Cola North America, will be members of Coca-Cola’s National Product Supply Group (“NPSG”). The NPSG will administer key national product supply activities for these NPSS bottlers, which currently represent approximately 95 percent of the U.S. produced volume.