Coca-Cola Bottling Co. Consolidated announces distribution agreement with Coca-Cola
Independent Coca-Cola bottler will exchange territory in Jackson, Tenn., for territory in Lexington, Ky.
Coca-Cola Bottling Co. Consolidated, Charlotte, N.C., announced that it has signed a definitive agreement with Atlanta-based The Coca-Cola Co. to exchange its franchise territory in Jackson, Tenn., for territory currently served by Coca-Cola Refreshments USA Inc. (CCR), a wholly owned subsidiary of The Coca-Cola Co., in Lexington, Ky. This agreement represents an additional phase of the proposed franchise territory expansion and realignment described in the previously announced letter of intent between Coca-Cola Consolidated and The Coca-Cola Co. The independent bottler expects the exchange transaction to close in the first half of 2015.
Coca-Cola Consolidated is continuing to work toward definitive agreements with The Coca-Cola Co. for the remainder of the proposed franchise territory expansion and realignment, including territories currently served by CCR in Cleveland and Cookeville, Tenn.; Louisville, Paducah and Pikeville, Ky.; and Evansville, Ind.
“We are excited about signing a definitive agreement for another phase of our previously announced transaction with The Coca-Cola Co.,” said Coca-Cola Consolidated Chairman and Chief Executive Officer J. Frank Harrison III in a statement. “We look forward to serving the Lexington community — including our customers, consumers and new employees there.”
The definitive agreement and other agreements to be entered into at closing will enable the independent bottler to receive CCR’s existing rights in the Lexington, Ky., territory to distribute brands owned by The Coca-Cola Co., as well as certain other brands not owned by The Coca-Cola Co. that currently are being distributed in the Lexington, Ky., territory by CCR. Such agreements also will allow Coca-Cola Consolidated to transfer to CCR all of its existing rights in the Jackson, Tenn., territory to distribute brands owned by The Coca-Cola Co., as well as rights to other brands not owned by The Coca-Cola Co. that currently are being distributed in the Jackson, Tenn., territory. The transaction also includes the exchange of certain distribution assets and working capital items in Coca-Cola Consolidated’s Jackson, Tenn., territory for comparable items in CCR’s Lexington, Ky., territory.
Closing of the transaction is subject to the parties satisfying certain conditions.