CHARLOTTE, N.C., February 7, 2017 — Coca-Cola Bottling Co. Consolidated today announced that it has signed a non-binding letter of intent with The Coca-Cola Company to expand the Company’s distribution territory in northern Ohio. The transaction proposed in the February 2017 Letter of Intent would provide exclusive distribution rights for the Company in territories located in and around Cleveland, Ohio currently served by another Coca-Cola bottler. Coca-Cola Refreshments USA, Inc. (“CCR”), a wholly-owned subsidiary of The Coca-Cola Company, is to acquire the distribution business in these territories from that bottler immediately prior to selling it to the Company.
Since May 2014, the Company has expanded its distribution territory in parts of Delaware, Kentucky, Illinois, Indiana, Maryland, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia and purchased manufacturing facilities in Maryland, Ohio and Virginia.
Under the February 2017 Letter of Intent, the Company and The Coca-Cola Company also have agreed that distribution territory in northern West Virginia associated with CCR’s Wheeling and Fairmont, West Virginia sales centers will no longer be part of the distribution territory expansion transaction contemplated by the previously announced non-binding letter of intent between the Company and The Coca-Cola Company dated February 8, 2016 and will be transferred by The Coca-Cola Company to another Coca-Cola bottler. The Company is continuing to work towards definitive agreements with The Coca-Cola Company for the remaining transactions described in the February 2016 Letter of Intent, including (i) the expansion of distribution territories in parts of northern Ohio and (ii) the purchase of a manufacturing facility in Twinsburg, Ohio.
The Company is also continuing to work towards completion of the transactions contemplated by other previously announced definitive agreements and non-binding letters of intent with The Coca-Cola Company and CCR, including:
- Closing the remaining transactions contemplated by definitive agreements executed with CCR in September 2016 to acquire distribution territory in parts of Indiana, Illinois and Ohio and to acquire two manufacturing facilities in Indiana; and
- Reaching a definitive agreement with CCR for the transactions described in the letter of intent dated June 14, 2016 for the exchange of distribution territory in the southern parts of Alabama, Georgia and Mississippi and a manufacturing facility in Mobile, Alabama for distribution territory in parts of Arkansas, southwestern Tennessee and northwestern Mississippi and manufacturing facilities in Memphis, Tennessee and West Memphis, Arkansas.
The Company is also continuing to work towards a definitive agreement with Coca-Cola Bottling Company United, Inc. (“United”) for the exchange of distribution territory in south-central Tennessee, northwest Alabama, and northwest Florida for distribution territory in and around Spartanburg and Bluffton, South Carolina, as proposed in the previously announced letter of intent dated June 14, 2016 between the Company and United.
The transaction proposed in the February 2017 Letter of Intent is subject to the parties reaching a definitive agreement, with a transaction closing expected to occur by the end of 2017. There is no assurance, however, that a definitive agreement will be reached or that the closing of the transaction contemplated by the February 2017 Letter of Intent will occur. The Company will file a Current Report on Form 8-K with the Securities and Exchange Commission with additional information regarding the proposed territory expansion transaction and certain other matters addressed in the February 2017 Letter of Intent that will be available on the Commission’s website at http://www.sec.gov and on the Company’s website at http://www.cokeconsolidated.com. For more information about the transaction, including the Company’s relationship with The Coca-Cola Company, investors should read the information included in the Company’s Current Report on Form 8-K that will be filed and all exhibits thereto.
About Coca-Cola Bottling Co. Consolidated
Coke Consolidated is the largest independent Coca-Cola bottler in the United States. Our Purpose is to honor God, serve others, pursue excellence and grow profitably. For over 110 years, we have been deeply committed to the consumers, customers and communities we serve and passionate about the broad portfolio of beverages and services we offer. We make, sell and distribute beverages of The Coca-Cola Company and other partner companies in more than 300 brands and flavors across 16 states to over 43 million consumers.
Headquartered in Charlotte, N.C., Coke Consolidated is traded on the NASDAQ under the symbol COKE. More information about the Company is available at www.cokeconsolidated.com. Follow Coke Consolidated on Facebook, Twitter, Instagram and LinkedIn.