Coca-Cola To Sell Nine U.S. Plants
- 9 years ago
Cola Co. said Thursday it plans to sell nine U.S. production plants worth about $380 million to three large bottling partners as the beverage giant accelerates a refranchising drive and lightens its balance sheet.
Atlanta-based Coke began divesting U.S. distribution assets including delivery trucks and warehouses in 2013 in a bid to cut costs and boost profit amid weak soda sales.
Thursday's announcement is the first time Coke confirmed it also intends to shed U.S. manufacturing assets, signaling that it will exit at least some of its low-margin, capital-intensive businesses to refocus on selling beverage concentrate and marketing.
Coke Chief Executive Muhtar Kent said in a news release on Thursday that the company will tap the strengths of the bottling partners "to operate as one highly aligned and highly competitive national product supply system."
Atlanta-based Coke began divesting U.S. distribution assets including delivery trucks and warehouses in 2013 in a bid to cut costs and boost profit amid weak soda sales.
Thursday's announcement is the first time Coke confirmed it also intends to shed U.S. manufacturing assets, signaling that it will exit at least some of its low-margin, capital-intensive businesses to refocus on selling beverage concentrate and marketing.
Coke Chief Executive Muhtar Kent said in a news release on Thursday that the company will tap the strengths of the bottling partners "to operate as one highly aligned and highly competitive national product supply system."