In order to improve the efficiency of its operating
territories and boost overall profits in the U.S.,
The Coca-Cola Company
) is shifting to a more franchise-based model, where it grants
territories to its bottling partners across the country.
Last week, The Coca-Cola Company signed Letters of Intent with
two U.S bottling partners, Reyes Holdings, L.L.C., and a new
Florida bottler. The two new transactions are subject to the
parties signing definitive agreements during 2014.
According to the Letter of Intent, Coca-Cola will grant its
territories in the greater Chicago area to J. Christopher and M.
Jude Reyes of Reyes Holdings, L.L.C. whereas its territories in
Central Florida will be granted to Troy Taylor, who will be made
the Chairman and Chief Executive Officer of the new Florida
Reyes Holdings is one of the largest global food and beverage
distributors. The company has successfully worked with strong
brands in mature markets like North, Central and South America,
Europe, the Middle East and the Asia Pacific. The Coca-Cola
Company, whose North American business has been soft for some
time, is likely to benefit from this agreement in the near
future. On the other hand, the new Florida based bottling
company, will serve Central Florida and Tampa/St. Petersburg,
under the management of Troy Taylor.
Coca-Cola has ownership interests in many bottling operations,
Coca-Cola Enterprises Inc.
Coca-Cola HBC AG
Coca-Cola FEMSA S.A.B de C.V.
) and Coca-Cola Amatil Ltd. In April 2013, Coca-Cola launched its
new beverage partnership model. According to the new model, from
Jan 1, 2014, the North American business of Coca-Cola was
segregated into a traditional company and bottler operating
model. As a result, Coca-Cola granted new expanded U.S.
territories to five of its bottlers to distribute its
COCA-COLA ENTRP (CCE): Free Stock Analysis
COCA COLA HELNC (CCH): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
COCA-COLA FEMSA (KOF): Free Stock Analysis
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