Coca-Cola (NYSE:KO) continues to seek cost savings in the absence of much fizz on the sales front, and has announced a new US supply system.
Coke has created the National Product Supply Group, which will include its own subsidiaries, Coca-Cola Refreshments and Coca-Cola North America, plus independents Coca-Cola Bottling Company (NASDAQ:COKE), Coca-Cola Bottling Company United ad Swire Coca-Cola USA.
Coca-Cola Refreshments will sell off nine production facilities, valued at around US$380mln, to the other members of the supply group in a three-year period starting in 2016.
The Coca-Cola Bottling Company said it has signed a non-binding letter of intent with The Coca-Cola Company to acquire manufacturing facilities in Virginia, Maryland, Indiana and Ohio, and has signed a definitive agreement to expand its franchise distribution territory to include areas within Delaware, the District of Columbia, Maryland, North Carolina, Pennsylvania, Virginia and West Virginia.