Behind the Coca-Cola deal
Q: What’s the difference between Coca-Cola and Coca-Cola Enterprises?
A: Coca-Cola develops drinks and markets brands. It also runs a juice business and soda fountain operation in North America. CCE is a bottling company that makes Coke soft drinks and distributes beverages. Both companies are Atlanta-based. Coke already owns about 35 percent of CCE, which was created during a bottler consolidation in 1986 and grew into the dominant North American bottler.
Q: How does buying CCE’s North American operations help Coca-Cola?
A: Executives say it will give Coke more direct control of its distribution chain, which can affect how efficiently and quickly it launches new products and adapts to consumer demand and economic conditions. They also expect cost savings of $350 million over four years.
Q: Will consumers see changes?
A: Most of the changes will be behind the scenes, but they could result in more aggressive pricing by Coke, analysts say.
Q: What happens to CCE and its more than 70,000 employees?
A: Executives say its headquarters will remain in metro Atlanta. Its business, however, will be focused on Europe. A large chunk of its workers will shift to Coca-Cola. Executives have not said how many jobs might be cut during the consolidation.
Q: What happens to CCE stock?
A: For each share they now hold, CCE stockholders will get one share of a new Coca-Cola Enterprises company focused only on European bottling, plus a one-time $10-per-share payment.
