Swire Pacific announced today that Swire Coca-Cola USA, a subsidiary of Swire Beverages, is one of five US bottlers who have agreed in principle with The Coca-Cola Company to participate in the creation of a stronger US business model through the granting of new, expanded territories. It is expected that Swire Coca-Cola USA will participate, along with the other bottlers, in the further development of this business model.
Under the arrangement announced today, Swire Coca-Cola USA will assume territories in Colorado including the Denver and Colorado Springs markets. These markets border Swire's existing territories.
"Since 1978, we have worked hand-in-hand with The Coca-Cola Company serving our local customers and supporting the communities where we live and work," said Jack Pelo, President & CEO, Swire Coca-Cola USA. "We look forward to collaborating with The Coca-Cola Company to build a system which will serve the needs of our customers and consumers even more effectively and efficiently. The granting of new territories in Denver and Colorado Springs will increase our population served from 6.2 million to 10.7 million consumers."
Patrick Healy, Managing Director of Swire Beverages, added, "We are committed to working with The Coca-Cola Company to improve our understanding of our customers' businesses, and to use that understanding to create value for our customers and shareholders."
"The franchise system has always been the strength of the Coca-Cola business globally, and today we are accelerating the transformation of our US systems in ways that will establish a clear path to achieve our 2020 Vision," said Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company.
The transactions announced today are subject to the parties reaching definitive agreements by the end of 2013, with closings expected during 2014.
Swire Coca-Cola USA has two production facilities located in Salt Lake City, Utah and in Fruitland, Idaho. They operate 26 sales centres serving portions of 11 western states. Its existing franchise territory extends from 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 Ltd. (HKSE: 00019/00087) (www.swirepacific.com). It 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 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 over 63 beverage brands and distributes them to a franchise population of over 440 million people.
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For media enquiries, please contact:
Jamie Neerings, Swire Coca-Cola USA
Email: jneerings@swirecc.com
Cindy Cheung, Swire Pacific Limited
Email: cindycheung@jsshk.com
Source/ Swire Pacific Limited