Coca-Cola plants Coca-Cola to sell off 9 bottling plants in US
Beverage giant Coca-Cola Co. said that it is all set to sell its nine production factories to three of its independent manufacturers. The move will be taken by the company so as to get rid of its low-margin assets and reduce the manufacturing costs in the United States.
The nine plants will be acquired by the manufacturers Coca-Cola Bottling Co United, Coca-Cola Bottling Co Consolidated and Swire Coca-Cola USA. The plants are valued at $380 million from Coca-Cola Refreshments that Coke created after buying the top bottler in North America in 2010. Coke added that their four entities with its operating group in North America will join hands to form a new supply group.
The new group will work together in some of the decisions like new packaging launches and ingredients purchases. The group will also represent 95% of the production of the company volume in the United States. Meanwhile the beverage giant is facing slack sales in the United States. The company has been selling its bottling operations , which also helped it to get it products to the retailers.
So far it has not sold its production facilities but the sale of plants of the soft drink products like Sprite, Coke, Fanta is expected to begin between 2016 and 2018.
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