The Coca-Cola Company has signed a letter of intent (LoI) to refranchise territories to Coca-Cola Bottling Co Consolidated.

As per the LoI, The Coca-Cola Company expects to refranchise most of the market unit in Memphis, Tennessee, to North Carolina-based Consolidated.

This area comprises parts of Tennessee, Mississippi and Arkansas, including Little Rock.

"These agreements involving Consolidated and United are another important step in our ongoing refranchising initiative."

Consolidated also intends to buy production facilities in Memphis, Tennessee, and West Memphis, Arkansas.

Meanwhile, Consolidated has signed a separate letter of intent for a small territory owned by the Coca-Cola Company, which is focused on Louisa, Kentucky, with operations that span into West Virginia.

Several facilities and territories in the southeast will be exchanged under letters of intent signed by Consolidated, bottler Coca-Cola Bottling Company United, and the Coca-Cola Refreshments unit of the Coca-Cola Company.

These agreements will create more contiguous territories for both Consolidated and United in the southeastern region of the US.

Coca-Cola North America president J Alexander "Sandy" Douglas Jr said: "These agreements involving Consolidated and United are another important step in our ongoing refranchising initiative.

"Consolidated’s agreement involving Memphis adds a major market to their portfolio. Consolidated and United have also agreed to create more geographically contiguous operations for both companies in the Southeast, which will improve the overall ability of the Coca-Cola system to serve customers and consumers."