CHARLOTTE, NC — The state’s biggest independent Coke bottler stated it has signed a nonbinding letter of cause with Coca-Cola Co. to purchase production centers and expand its franchise distribution territory in several states.
Coca-Cola Bottling Co. Consolidated has signed a nonbinding letter of cause to buy and operate production facilities presently owned and operated by using Coca-Cola Refreshments (CCR) usa Inc., a wholly owned subsidiary of Coca-Cola Co., in Sandston, VA; Silver Spring and Baltimore, MD; Indianapolis and Portland, IN; and Cincinnati, OH. a sequence of transaction closings for these facilities is expected to start inside the first 1/2 of 2016.
Coke Consolidated has also signed a definitive agreement for the first segment of previously introduced plans for franchise territory expansion with Coca-Cola Co. It consists of Baltimore, Capital Heights, Cumberland, Easton, Hagerstown, l. a. Plata and Salisbury in Maryland; Alexandria, Norfolk, Richmond, Yorktown, Fredericksburg and Staunton in Virginia; Elizabeth city in North Carolina; and Washington, DC.
CCR presently serves these territories. Coke Consolidated said it expects to begin transaction closings for those distribution territories in fall 2015 and to complete them by way of mid-2016.
The agreement offers Coke Consolidated the unique rights to distribute beverage manufacturers owned through Coca-Cola Co., in addition to certain different non-Coca-Cola manufacturers, which might be presently being distributed in those territories through CCR. Coke Consolidated will make a quarterly sub-bottling charge to CCR on a continuing foundation for the specific rights.
The groups have also achieved a “territory conversion agreement” which presents for all of Coke Consolidated’s franchise distribution territories with Coca-Cola Co., including its legacy, lately received and to-be-acquired territories, to be governed within the destiny by means of a new shape of complete beverage agreement.
Coke Consolidated said it’s miles continuing to paintings closer to a definitive settlement with Coca-Cola for the the rest of the proposed franchise territory expansion, together with distribution territories in parts of Ohio, Indiana, Illinois and Kentucky.
“we’re enthusiastic about the possibility to personal and function additional production facilities and end up a part of a brand new country wide product supply group for the Coca-Cola system,” said Coca-Cola Bottling Co. Consolidated chairman and leader govt J. Frank Harrison III.