Coca-Cola signs definitive agreement with Great Lakes Coca-Cola Distribution
Great Lakes to dedicate sales, distribution activities to Coca-Cola brands
Atlanta-based The Coca-Cola Co. signed a definitive agreement with Great Lakes Coca-Cola Distribution LLC, a wholly owned subsidiary of Reyes Holdings LLC, Rosemont, Ill. This agreement follows a letter of intent announced in February with Reyes Holdings LLC for the granting of territories in the greater Chicago area. The Coca-Cola Co. anticipates closing the transaction in 2015, but financial terms were not disclosed.
“Reyes Holdings has a proven track record of building strong brands in mature markets with local customers and will be an important asset to our system,” said Sandy Douglas, president of Coca-Cola North America, in a statement. “We’re proud to welcome Chris Reyes and Jude Reyes to the family of Coca-Cola franchise bottlers in North America.”
Reyes Holdings is one of the largest global providers of food and beverage distribution services. Its operations span North, Central and South America as well as Europe, the Middle East and Asia Pacific. Annually, the company delivers more than 800 million cases of high-quality, well-known beer and food products, it reports. Great Lakes Coca-Cola Distribution will dedicate all of the company’s sales and distribution activities on servicing the Coca-Cola brands.
“We’re thrilled to be one of the newest members of the Coca-Cola family,” said Christopher Reyes, co-founder and co-chairman of Reyes Holdings, in a statement.
The other Reyes Holdings Founder and Co-Chairman, Jude Reyes, added in a statement, “We intend to leverage our distribution experience to refresh fans of Coca-Cola’s iconic brands throughout greater Chicagoland.”
In April 2013, The Coca-Cola Co. announced that it had signed letters of intent with five U.S. bottlers — Coca-Cola Bottling Co. Consolidated, Coca-Cola Bottling Co. United Inc., Swire Coca-Cola USA, Coca-Cola Bottling Co. High Country and Corinth Coca-Cola Bottling Works Inc. — to create a stronger U.S. business model through the granting of new, expanded territories. The Coca-Cola Co. says it is encouraged by the transitions that have taken place with each of these bottlers in 2014. Looking ahead, the company says it is positioned to complete the initial transitions in 2015.
Additionally the company announced on Sept. 24 that it had signed a definitive agreement with Troy Taylor, who now is chairman and chief executive officer of Coca-Cola Bottling Co. of Central Florida and expects to complete the transaction in 2015.
In all of the newly granted territories, The Coca-Cola Co. will work collaboratively with the bottlers to implement key elements of the evolving U.S. operating model, including a grant of exclusive territory rights and the sale by Coca-Cola Refreshments (CCR) of distribution assets and cold drink equipment; a finished goods model under which production assets will remain with CCR, which would facilitate future implementation of a national product supply system; an improved, more integrated information technology platform; and a new beverage agreement that supports the evolving operating model.