Reyes Holdings to Operate in Eight States, with
Territories in Large Portions of the Midwest and West; Expansion
Into California and Nevada Includes Three Bottling Facilities
Coca-Cola Has Reached Definitive Agreements or
Signed Letters of Intent to Refranchise Bottling Territories that
Account for More Than 80% of Total Coca-Cola Refreshments
Volume
Reyes Holdings LLC – one of the largest food and beverage
distribution companies in the world – has reached a new letter of
intent with The Coca-Cola Company for territory in California and
Nevada, including the major metropolitan markets of Los Angeles,
San Francisco, San Diego and Las Vegas.
Reyes Holdings signed its first letter of intent for Coca-Cola
territory in February 2014. Reyes went on to launch Great Lakes
Coca-Cola Distribution LLC, which serves parts of six states in the
Midwest, including the cities of Chicago, Detroit, Minneapolis and
Milwaukee.
The letter of intent announced today involves the West Operating
Unit of Coca-Cola Refreshments, which is part of The Coca-Cola
Company. Reyes Holdings already has extensive operations in
California and Nevada, including Reyes Beverage Group, the largest
beer distribution operation in the United States, and The
Martin-Brower Company LLC, a global food service distributor
servicing McDonald’s and other high-quality brands.
With the addition of more territory, Reyes Holdings, which is
based in Rosemont, Ill., will serve as a Coca-Cola bottler in parts
of eight states.
“We chose Reyes Holdings as our new partner in California and
Nevada because they are a long-term operator that is well
positioned to invest in this local business and help us grow our
total portfolio of brands,” said J. Alexander “Sandy” Douglas Jr.,
President, Coca-Cola North America. “We are very pleased that Reyes
Holdings will expand its already significant role in the U.S.
Coca-Cola system.”
“It’s been exciting being part of the Coca-Cola system in the
Midwest, and we see tremendous opportunity with this territory
expansion into the Western U.S.,” said Chris Reyes, founder
and co-Chairman of Reyes Holdings.
“We look forward to being the best local Coca-Cola bottler and
distributor we can be in communities across California and Nevada,
while at the same time contributing back to the places in which we
operate,” added Jude Reyes, founder and co-Chairman of Reyes
Holdings.
The letter of intent announced today is the first step in the
process. The next stage is a definitive agreement, followed by a
closing.
21st Century Beverage Partnership Model
History
This agreement is part of a plan to refranchise all of The
Coca-Cola Company’s U.S. bottling territories by the end of
2017.
The Coca-Cola Company began working with its bottling partners a
decade ago on plans to develop a model that evolves the system to
serve the changing customer and consumer landscape, with a focus on
creating stronger system alignment. A critical step was the
Company’s acquisition of the North American territories of
Coca-Cola Enterprises in 2010, which led to the establishment of
Coca-Cola Refreshments.
Since the closing of the transaction involving the North
American territories of Coca-Cola Enterprises, The Coca-Cola
Company has accelerated the implementation of the new model by
strategically addressing the bottling system, customer service,
product supply and a common information technology platform.
Ultimately, the Coca-Cola system in North America will be
comprised of economically aligned bottling partners that have the
capability to serve major customers, coupled with the ability to
maintain strong, local ties across diverse markets in the United
States and Canada.
Including the West Operating Unit, the Company has reached
definitive agreements or signed letters of intent to refranchise
bottling territories that account for approximately 75% of total
U.S. bottler-delivered distribution volume, which equates to more
than 80% of total Coca-Cola Refreshments volume. The Company also
has reached definitive agreements or signed letters of intent for
47 of the 51 cold-fill production facilities in the United
States.
The Coca-Cola Company and Reyes Holdings are committed to
working together to implement a smooth transition with minimal
disruption for customers, consumers and system associates.
Financial terms are not being disclosed.
About The Coca-Cola
Company
The Coca-Cola Company (NYSE: KO) is the world’s largest beverage
company, offering over 500 brands to people in more than 200
countries. Of our 21 billion-dollar brands, 19 are available in
lower- or no-sugar options to help people moderate their
consumption of added sugar. In addition to our namesake Coca-Cola
drinks, some of our leading brands around the world include: AdeS
soy-based beverages, Ayataka green tea, Dasani waters, Del Valle
juices and nectars, Fanta, Georgia coffee, Gold Peak teas and
coffees, Honest Tea, Minute Maid juices, Powerade sports drinks,
Simply juices, smartwater, Sprite, vitaminwater, and Zico coconut
water. At Coca-Cola, we’re serious about making positive
contributions to the world. That starts with reducing sugar in our
drinks and continuing to introduce new ones with added benefits. It
also means continuously working to reduce our environmental impact,
creating rewarding careers for our associates and bringing economic
opportunity wherever we operate. Together with our bottling
partners, we employ more than 700,000 people around the world. For
more information, visit our digital magazine Coca-Cola Journey at
www.coca-colacompany.com, and follow The Coca-Cola Company on
Twitter, Instagram, Facebook and LinkedIn.
About Reyes Holdings,
L.L.C.
Reyes Holdings, aligned with leading beverage and foodservice
providers, delivers some of the best-known brands and widest
variety of food and beverage items to retailers around the world.
Annually, the company delivers more than 950 million cases of
beverage and food products from over 150 warehouses in North,
Central and South America, as well as Europe, the Middle East and
Asia Pacific. Reyes Holdings operations include Reyes Beverage
Group, the largest beer distributor in the United States
representing import, craft and domestic beer brands; The
Martin-Brower Company, L.L.C., a global quick-service restaurant
distribution business and the largest supplier worldwide of
distribution services to the McDonald’s restaurant system; Reinhart
Foodservice, L.L.C., one of the largest broadline foodservice
distributors in the United States; and Great Lakes Coca-Cola
Distribution, L.L.C., a dedicated Coca-Cola bottler, manufacturer
and distributor based in the Midwest. Reyes Holdings is the 12th
largest privately held company in the United States with more than
24,000 employees and annual sales of approximately $24 billion. For
more information about Reyes Holdings, visit the company website at
www.reyesholdings.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170516005863/en/
The Coca-Cola CompanyScott Williamson,
404-676-3288swilliamson@coca-cola.com
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