Coca-Cola to Sell US Manufacturing and Distribution

The Coca-Cola Co. is planning to sell off its U.S. manufacturing and distribution operations by 2017 so it can focus on its concentrate-making business, according to The Wall Street Journal.

When Coke acquired its largest bottler for $12.3 billion six years ago it initially planned to re-franchise delivery trucks and warehouses but hang onto its bottling plants. But Coke’s bottling partners didn’t want the trucks without the factories. Last September, Coke agreed to sell some U.S. plants. Last month, it said it would sell all of them.

Coke says smaller U.S. partners historically have been better distributors because of their local focus, and that a new decision-making structure among bottlers ensures manufacturing will now benefit from national scale.

“The marriage of national with local is the best of both worlds,’’ said Sandy Douglas, Coke’s North American chief.

For the full article click here: "Coke Tweaks Its Business Model Again"