The Coca-Cola Company has announced that it completed the refranchising of its bottling operations in the United Staes, after closing its final three partnership deals.
This week, the company finalised deals with Liberty Coca-Cola Beverages in New York and New Jersey, Reyes Coca-Cola Bottling in California and Nevada, and Swire Coca-Cola USA in Colorado.
Now, as a result of the refranchising scheme, nearly 70 local, independent partners across the US are running their own logistics and bottling operations.
The company says that it has worked with its bottling partners to execute 60 transitions in the US over the past ten years, involving 350 distribution centres, over 50 production facilities, and more than 55,000 employees.
“We are reshaping our business and accelerating our transformation to become a total beverage company,” said J. Alexander Douglas Jr., president of Coca-Cola North America.
“Our system is built to respond to consumers’ needs in a fast-moving and highly competitive environment. Returning the local part of our business to where it really belongs and will best perform – in the hands of local companies – is a key enabler of the exciting transformation and growth of our business.”
Last week, the Coca-Cola Company reported a 'solid third quarter' in its 2017 financial year, reaffirming its full-year outlook.
The drinks giant saw net revenues decline by 15% to $9.1 billion, which it attributes to the ongoing refranchising of bottling territories.
However, organic revenue went up by 4%, and the company's operating margin grew by 200 basis points.
Additionally, Coca-Cola North America announced that Alexander Douglas is set to retire as president, and will be succeeded by the group's chief retail sales officer, Jim Dinkins.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.