Swire Pacific Limited (HKSE: 00019/00087) announced today that Swire
Coca-Cola USA, a subsidiary within Swire Pacific’s Beverages Division,
has signed a Letter of Intent (LOI) with The Coca-Cola Company under
which Swire Coca-Cola USA is granted additional territory rights in
Arizona to include the Phoenix and Tucson markets subject to closing a
definitive deal. After the grant of the new territories, Swire Coca-Cola
USA will serve the entire state of Arizona and its franchise population
in the U.S. will increase from approximately 11.2 million to 17.5
million.
Today’s LOI follows previous territory grants in 2014 where Swire
Coca-Cola USA received expanded territories including Denver and
Colorado Springs under The Coca-Cola Company’s 21st Century Beverage
Partnership model. The LOI announced today is subject to the parties
reaching Definitive Agreements. Financial terms were not disclosed.
"We are pleased to sign this Letter of Intent with The Coca-Cola
Company. The grant of additional exclusive territory rights in Arizona
will not only further expand the scale of our business in the U.S. but
will deepen our 37-year working relationship with The Coca-Cola
Company,” said Jack Pelo, President & CEO, Swire Coca-Cola USA.
Patrick Healy, Managing Director of Swire Beverages, said, “The grant of
additional franchise territories in Arizona, following the assumption of
the Denver and Colorado Springs markets last year, underscores Swire
Beverages’ strengths as a world-class bottler in local marketing and
distribution as well as serving the needs of our customers. We will
continue to work closely with The Coca-Cola Company in order to
facilitate and enhance our service for a significantly expanded customer
base.”
Consistent with prior transactions, in the newly granted territories,
Swire Coca-Cola USA and The Coca-Cola Company will work collaboratively
to implement key elements of the evolving 21st Century Beverage
Partnership Model including:
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More rational and contiguous operating territories
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A grant of exclusive territory rights and the sale by Coca-Cola
Refreshments (CCR) of distribution assets and cold drink equipment
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A finished goods model under which production assets will remain with
CCR
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An improved, more integrated information technology platform
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A new beverage agreement that supports the evolving operating model
“We have made significant progress toward the implementation of our 21st
Century Beverage Partnership Model in the U.S., which continues to
strengthen our franchise system,” said Sandy Douglas, President,
Coca-Cola North America. “Today we mark another significant milestone in
evolving our U.S. operations as we align for growth with Swire Coca-Cola
USA – a partner that has proven success, taken a generational view and
consistently invested in capabilities and leadership. Together we
continue to transform our U.S. business and move closer to achieving our
2020 Vision.”
To learn more about The Coca-Cola Company's LOI with U.S. Bottlers,
please visit http://www.coca-colacompany.com/press-center/press-releases/the-coca-cola-company-announces-additional-letters-of-intent-with-us-bottling-partners
About Swire Coca-Cola USA
Swire Coca-Cola USA, a subsidiary within Swire Pacific’s Beverages
Division, has two production facilities located in Salt Lake City, Utah
and in Fruitland, Idaho and 29 sales centers serving portions of 13
western states. Currently, its franchise territory extends through parts
of Washington in the north to Arizona in the south and from California
in the west to Nebraska in the east.
About Swire Beverages
Swire Beverages is a division of Swire Pacific Limited. The division has
the exclusive right to manufacture market and distribute the products of
The Coca-Cola Company in Hong Kong, Taiwan, seven provinces in Mainland
China and an extensive area of the Western USA. The relationship with
Coca-Cola began in 1965, with the acquisition by Swire of the majority
shareholding in the Hong Kong franchise. Swire Beverages manufactures 57
beverage brands and distributes them to a franchise population of over
450 million people.
Copyright Business Wire 2015