Coca-Cola agreed on Thursday to acquire Great Plains Coca-Cola Bottling Co., its fifth largest bottler, giving the beverage maker an even bigger stake in how it gets its products to consumers in North America.
Coke is buying Great Plains, whose territories include Oklahoma and Arkansas, for about $360 million. The deal is expected to be completed by year's end, pending regulatory approval.
The acquisition follows Coke's purchase last year of its biggest North American bottler, Coca-Cola Enterprises, for $3.4 billion. That put Coke North America in the driver's seat more than ever in making decisions on how to deliver its goods to costumers, arguably the most important part of the Atlanta-based company's operations.
"Coke Great Plains handles 1.2 percent of Coke's U.S. bottle and can volume," said John Sicher, editor and publisher of Beverage-Digest, "so this deal increases the footprint of Coca-Cola Refreshments and gives them some additional valuable territories, adjacent to where they already operate."
Coke leaders were quick to say the Great Plains deal is not an indication of a broader desire to acquire more bottling operations. Great Plains pursued a deal with Coke.
“The Coca-Cola Co. remains committed to the franchise system, and we believe that independent bottlers are key to our success," said Coke spokesman Scott Williamson. "As part of that commitment, and in keeping with our 2020 Vision, we are always working with our independent bottlers to build capabilities and to ensure that our system is well-positioned for the future.”
Still, Coke says it will benefit from the Great Plains deal by bringing in a team that has been praised for getting Coke products to customers on time and with orders filled completely and accurately, one of Coke's goals.
“Great Plains is an organization that is driven by a commitment to continuous customer service," Williamson said. "It has developed many innovative processes that customers consider best in class, including offering a single source of supply and providing frequent product deliveries that are always on time and complete. [Coca-Cola Refreshments] can learn a great deal from Great Plains and the success that they have created.”
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