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Coca-Cola to consolidate U.S. bottlers under new supply system

Coca-Cola to consolidate U.S. bottlers under new supply system

September 24, 2015

Via: itCurated
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Coca-Cola Co. said Thursday that it plans to bring some of its top U.S. bottlers together under a new supply system, the soda giant’s latest move to cut costs amid tepid sales.

Coke KO, -0.08%  said the new national supply group will include independent bottlers Coca-Cola Bottling Co. Consolidated, Coca-Cola Bottling Company United, Swire Coca-Cola USA and the company-owned Coca-Cola Refreshments and Coca-Cola North America. Together, the bottlers account for 95% of the volume produced in the U.S.

The initial terms of the agreement call for Coca-Cola Refreshments, which is owned by Coke, to divest nine production facilities valued at about $380 million to the other bottlers between 2016 and 2018.