The Coca-Cola Company intends to grant some more territories to Swire Coca-Cola, USA, which include cities such as Seattle, Spokane, Wash., Portland, Oregon, and a wide area of the Pacific Northwest.

Swire Coca-Cola, USA, a unit of Swire Pacific Limited’s Beverages Division, has signed a letter of intent with The Coca-Cola Company for the former to expand its existing territories in the US to cover parts of Washington, Idaho and Oregon and to buy acquire cold-fill production facilities in Bellevue, Washington, near Seattle, and in Wilsonville, Oregon, near Portland.

The LoI is part of Coca-Cola North America’s current implementation of a 21st Century Beverage Partnership Model, which is a broad initiative in order to develop system capabilities to sustain success.

Swire Coca-Cola, USA, president and CEO, Jack Pelo said "We are delighted to sign this letter of intent with The Coca-Cola Company."

"This latest grant of additional territory rights, following on from the agreements to expand our territories in Colorado and Arizona, underscores the important role Swire is playing in The Coca-Cola Company’s refranchising initiatives in North America."

The Coca-Cola Company North America president J Alexander said: "Sandy" Douglas Jr said: "Swire is a great partner, and we are excited at this proposed further expansion of their U.S. territories in the Coca-Cola system."

"We’re also pleased that the overall refranchising process is going very well in North America."

The company has also reached a definitive agreement with Great Lakes Coca-Cola Distribution, a Reyes Holdings company based in Rosemont, Illinois, for additional territories in Wisconsin, Minnesota, Illinois, Michigan and Iowa. A letter of intent for these territories was earlier announced.

The Coca-Cola Company started working with its bottling partners ten years ago on plans to develop a model that evolves the system to serve the changing customer and consumer landscape, with a focus on creating stronger system alignment.

One major step towards this end was the Company’s acquisition of the North American territories of Coca-Cola Enterprises in 2010.

In the five years since the transaction closed, The Coca-Cola Company has accelerated the implementation of the new model by strategically addressing the bottling system, customer service, product supply and a common information technology platform.

Till date, the company has reached definitive agreements or signed letters of intent to refranchise territories that account for approximately 45% of bottler-delivered distribution volume in the US.

The new deal announced is subject to The Coca-Cola Company and Swire Coca-Cola, USA reaching definitive agreements.
Financial details of the transaction have not been divulged.