The Coca-Cola Company has announced it reached agreement with food and beverage distribution company Reyes Holdings LLC over expansion into new territory in California and Nevada.
The deal includes major metropolitan markets like Los Angeles, San Francisco, San Diego and Las Vegas.
The letter of intent involves the West Operating Unit of Coca-Cola Refreshments, which is part of The Coca-Cola Company.
Reyes Holdings already has extensive operations in California and Nevada, including Reyes Beverage Group, and The Martin-Brower Company LLC, a global food service distributor servicing McDonald’s and other brands.
With this addition, Reyes Holdings will serve as a Coca-Cola bottler in parts of eight states.
J. Alexander 'Sandy' Douglas Jr., President, Coca-Cola North America, commented on the deal. He said, “We chose Reyes Holdings as our new partner in California and Nevada because they are a long-term operator that is well positioned to invest in this local business and help us grow our total portfolio of brands."
The multinational beverage corporation said that this agreement is part of a plan to refranchise all of its U.S. bottling territories by the end of 2017.
It claims that its system in North America will be comprised of ‘economically aligned bottling partners that have the capability to serve major customers, coupled with the ability to maintain strong, local ties across diverse markets in the United States and Canada’.
Chris Reyes, founder and co-Chairman of Reyes Holdings, added, “It’s been exciting being part of the Coca-Cola system in the Midwest, and we see tremendous opportunity with this territory expansion into the Western U.S.
“We look forward to being the best local Coca-Cola bottler and distributor we can be in communities across California and Nevada, while at the same time contributing back to the places in which we operate.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.