Atlanta-based Coca-Cola Enterprises is merging with two other bottling giants to create the world’s largest independent Coca-Cola bottler based on net revenues of $12.6 billion, it was announced Thursday.
CCE, which operates in Europe, will join Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke to create Coca-Cola European Partners, which will serve more than 300 million in 13 countries across Western Europe, including Belgium, France, Germany and Great Britain.
John Brock, chairman and CEO of CCE, will become Chief Executive Officer of the new bottler, the company said Thursday. Sol Daurella, executive chairwoman of Coca-Cola Iberian Partners, will be chairwoman of Coca-Cola European Partners.
Coca-Cola bought the North American operations of CCE, its largest independent bottler, in 2010 for more than $12 billion. Since then Coke has been refranchising parts of its bottling system to bottlers across the U.S.
“The creation of a larger, unified Coca-Cola bottling partner in Western Europe represents an important step in our global system’s evolution,” Muhtar Kent, Coke’s chairman and chief executive officer said in a statement.
“We continue to adapt our business model to innovate, invest and grow along with the changing demands of the marketplace,” Kent continued. “With the strong leadership that will be assembled from across the three organizations, Coca-Cola European Partners will be well-positioned to deliver better and more effective service to customers throughout Western Europe and drive profitable growth across multiple beverage categories.”
The move comes as Coke is in the middle of a year-long effort to get sales back on track by spending more on marketing, offering a wider variety of packaging for drinks, and increasing prices. Carbonated drinks, the company’s bread and butter, peaked in the 1990s and have been struggling as consumers drink more waters, teas and energy drinks.
Coke’s turnaround efforts are having an impact. Coke reported recently that second quarter profit rose to $3.11 billion, or 71 cents per share, up from $2.6 billion a year earlier.
In Thursday’s merger deal, Coca-Cola Enterprises shareholders is said to receive one share of Coca-Cola European Partners stock and a one-time cash payment of $14.50 a share.
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