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Coca-Cola Bottling (COKE) to Expand Distribution Network
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A Coca-Cola Company (KO - Free Report) unit has signed agreements with Charlotte-based Coca-Cola Bottling Co. Consolidated (COKE - Free Report) under which the latter will expand its distribution footprint to new markets in Ohio, Indiana, Illinois, Kentucky and West Virginia.
The expansion drive includes the proposal stated in the letter of intents issued last year as well as this year. With the latest spreading out, Coca-Cola Bottling has moved into Cincinnati, Columbus and Dayton, Ohio; Indianapolis, Bloomington, Terre Haute, South Bend, Fort Wayne, Lafayette and Anderson in Indiana; and Louisa, Kentucky.
Meanwhile, Coca-Cola Bottling has signed a manufacturing agreement under which it will acquire three manufacturing facilities in the cities of Cincinnati, OH; Indianapolis and Portland, IN.
Apart from these deals, the bottler is currently focused on the expansion of its distribution territories in parts of northern Ohio and northern West Virginia. Along with that, the company has plans to take over a manufacturing facility in Twinsburg, OH.
Coca-Cola Bottling will also carry out the exchange of distribution territory in the southern parts of Alabama, Georgia and Mississippi and a manufacturing facility in Mobile, AL for distribution territory in parts of Arkansas, southwestern Tennessee and northwestern Mississippi and manufacturing facilities in Memphis, TN and West Memphis, AR.
Last Month, Coca-Cola Bottling’s second-quarter 2016 earnings as well as net sales improved 6.3% and 36.7% year over year, respectively. Organic growth in the legacy territories as well as expansion through the acquisition of several new distribution territories from Coca-Cola led to the stellar performance.
Comparable net sales increased 4.5% driven by a 4.5% increase in volume, particularly in sparkling and still portfolios. Coca-Cola Bottling’s top line also benefitted from the expansion of Monster Beverage Corporation’s (MNST - Free Report) product distribution throughout the company’s area of operation.
During second-quarter 2016, the company expanded its territories to include Maryland and Delaware and took over two manufacturing facilities in Maryland, under its agreement with Coca-Cola. Most of The Coca-Cola Company’s beverages are manufactured, sold and distributed by independent bottling partners like Coca-Cola Bottling Co, Coca-Cola European Partners Plc. and Coca-Cola FEMSA S.A.B de C.V.
The company is one of the largest independent bottlers of the products of Coca-Cola Company and intends to expand its distribution territory through the acquisition of production centers from Coca-Cola as part of the latter’s global re-franchising initiatives in 2016.
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Coca-Cola Bottling (COKE) to Expand Distribution Network
A Coca-Cola Company (KO - Free Report) unit has signed agreements with Charlotte-based Coca-Cola Bottling Co. Consolidated (COKE - Free Report) under which the latter will expand its distribution footprint to new markets in Ohio, Indiana, Illinois, Kentucky and West Virginia.
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The expansion drive includes the proposal stated in the letter of intents issued last year as well as this year. With the latest spreading out, Coca-Cola Bottling has moved into Cincinnati, Columbus and Dayton, Ohio; Indianapolis, Bloomington, Terre Haute, South Bend, Fort Wayne, Lafayette and Anderson in Indiana; and Louisa, Kentucky.
Meanwhile, Coca-Cola Bottling has signed a manufacturing agreement under which it will acquire three manufacturing facilities in the cities of Cincinnati, OH; Indianapolis and Portland, IN.
Apart from these deals, the bottler is currently focused on the expansion of its distribution territories in parts of northern Ohio and northern West Virginia. Along with that, the company has plans to take over a manufacturing facility in Twinsburg, OH.
Coca-Cola Bottling will also carry out the exchange of distribution territory in the southern parts of Alabama, Georgia and Mississippi and a manufacturing facility in Mobile, AL for distribution territory in parts of Arkansas, southwestern Tennessee and northwestern Mississippi and manufacturing facilities in Memphis, TN and West Memphis, AR.
Last Month, Coca-Cola Bottling’s second-quarter 2016 earnings as well as net sales improved 6.3% and 36.7% year over year, respectively. Organic growth in the legacy territories as well as expansion through the acquisition of several new distribution territories from Coca-Cola led to the stellar performance.
Comparable net sales increased 4.5% driven by a 4.5% increase in volume, particularly in sparkling and still portfolios. Coca-Cola Bottling’s top line also benefitted from the expansion of Monster Beverage Corporation’s (MNST - Free Report) product distribution throughout the company’s area of operation.
During second-quarter 2016, the company expanded its territories to include Maryland and Delaware and took over two manufacturing facilities in Maryland, under its agreement with Coca-Cola. Most of The Coca-Cola Company’s beverages are manufactured, sold and distributed by independent bottling partners like Coca-Cola Bottling Co, Coca-Cola European Partners Plc. and Coca-Cola FEMSA S.A.B de C.V.
The company is one of the largest independent bottlers of the products of Coca-Cola Company and intends to expand its distribution territory through the acquisition of production centers from Coca-Cola as part of the latter’s global re-franchising initiatives in 2016.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>