Industry Issues

July 1, 2005
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PBG to Acquire Pepsi Charlotte
The Pepsi Bottling Group, Somers, N.Y., will acquire Pepsi-Cola Bottling Co. of Charlotte, the ninth-largest Pepsi bottler in the United States, serving eight counties in North Carolina. Led by Dale Halton, Pepsi Charlotte has been a family-owned and operated company for 100 years.
“We are very excited to welcome Pepsi Charlotte to the PBG family,” said Chief Executive Officer John Cahill. “Contiguous to PBG’s existing territory, this is a growing business located in an area where the population is on the rise. Dale Halton has operated this company for the past 25 years in the tradition of her grandparents’ original vision. She has fostered a culture of attentive customer service and strong ties to the local community.”
Pepsi Charlotte’s operations include a manufacturing plant and warehouse in Charlotte, and warehouses in Cherryville and Midland, N.C. The transaction is expected to close during the fourth quarter of the year. BI
Constellation ends race for Allied Domecq
Constellation Brands announced last month that it will not attempt to acquire Allied Domecq, making it likely that Pernod Ricard and Fortune Brands will go forward with plans to buy the company. “Simply put, careful consideration and evaluation of the details following due diligence did not identify sufficient value for submitting an offer,” said Constellation Chief Executive Officer Richard Sands in a statement.
Constellation led a beverage company/financial consortium that included Brown Forman Corp., Lion Capital and The Blackstone Group for a potential counterbid to the one put forward by Pernod Ricard and Fortune Brands. BI
Coca-Cola, Arizona in talks
The Coca-Cola Co. is rumored to be in talks with Arizona Beverages that could lead to a distribution agreement or full acquisition. The companies made no public comment, but Coca-Cola recently penned an agreement to distribute Rockstar Energy Drink in order to boost its energy drink presence. The company already has a ready-to-drink tea partnership with Nestlé. BI    
Tropicana to drop health claim
The Federal Trade Commission and PepsiCo have settled charges over the company’s claim that its Tropicana Heart Healthy Orange Juice can lower blood pressure and cholesterol levels. The FTC argued the claims, which were part of print and television ads, were unsubstantiated and not backed up by “competent and reliable scientific evidence.” PepsiCo has said the settlement is not an admission of a law violation and it will continue to promote the product as part of a healthy diet. BI

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Dinner with Tequila Don Julio

Diageo is taking its Tequila Don Julio brand on the road this summer with a rolling Airstream Speakeasy mobile craft cocktail bar. The team stopped in Chicago on July 29 to share some specialty tequila cocktails paired with food from Chicago restaurants Honey Butter Fried Chicken and The Radler as well as dessert venues Black Dog Gelato and Baker Miller. (Photos by Jennifer Haderspeck)

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