Coca-Cola To Refranchise Territory To Coca-Cola Bottling Co. Consolidated

(RTTNews) - Coca-Cola Co. (KO) announced a letter of intent to refranchise territories to Coca-Cola Bottling Co. Consolidated (COKE).

Coca-Cola said it expects to refranchise most of the Memphis, Tennessee, market unit to Charlotte, North Carolina-based Coca-Cola Bottling Consolidated. This area includes portions of Tennessee, Mississippi and Arkansas, including Little Rock. Consolidated also expects to acquire production facilities in Memphis, Tennessee, and West Memphis, Arkansas.

Separately, Consolidated has signed a letter of intent for a small territory owned by Coca-Cola that is centered on Louisa, Kentucky, with operations that span into West Virginia.

In addition, a number of facilities and territories in the Southeast will be exchanged under letters of intent involving Consolidated, fellow bottler Coca-Cola Bottling Company United and the Coca-Cola Refreshments unit of Coca-Cola Co.

On April 29, Coca-Cola and Consolidated also closed a previously announced agreement to refranchise territory centered on Baltimore. This deal included production facilities in Baltimore and Silver Spring, Maryland.

These agreements are part of a plan to refranchise all of Coca-Cola's North American territories by the end of 2017.