Boston, MA 09/02/2014 (wallstreetpr) – According to reports, the largest independent bottler of the country Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE) has decided to sign an agreement with The Coca-Cola Company (NYSE:KO) to expand increase its franchise territory. The company eyes on TN territory which is currently used by Coca-Cola Refreshments USA, Inc.; a wholly owned subsidiary of KO. The agreement is the second phase of the franchise expansion of COKE according to given description in the Letter of Intent signed between both the companies sometime ago. COKE expects this transaction to be closed by the end of October.
What Else COKE is Working On:
The company is working hard to finish the remaining part of expansion program that includes KY and Evansville, IN, Cleveland and Cookeville, TN and Louisville, Lexington, Paducah and Pikeville. According to J. Frank Harrison III, Chief Executive Officer and Chairman of Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE), “We are delighted to sign an agreement with The Coca-Cola Company (NYSE:KO). It is the next step towards our initiative of serving the people and employees of the Knoxville community.” The entire management of the COKE is happy and committed to writing a new success story via the proposed expansion of the company in the above-stated areas.
What will this definitive agreement change for COKE:
After the new definitive agreement, Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE) will get the rights to distribute the brands owned by The Coca-Cola Company (NYSE:KO) in Knoxville territory area. The agreement will also help the company to distribute those brands as well that is currently sold by CCR. The agreement includes the purchase rights to distribute non-Coca-Cola brands and purchase of certain working capital items and distribution assets which are currently owned by CCR. The agreement also includes a grant given to COKE by CCR in regard with exclusive rights to distribute brands owned by The Coca-Cola Company (NYSE:KO) under a beverage agreement to be entered into at closing.
