Coca-Cola plans to sell off production plants in streamlining plan
Coca-Cola plans to sell nine production plants in the United States as the company creates a new supply system in order to cut costs, according to the Wall Street Journal.
The plants will be sold to three of the country’s largest bottlers–Coca-Cola Bottling Co. Consolidated, Coca-Cola Bottling Company United, and Swire Coca-Cola USA–which are joining a new Coca-Cola product supply system that was announced on Thursday.
“Our U.S. operating model continues to become stronger, more aligned and more competitive. Today we are taking further action to enable profitable growth for our entire U.S. system,” Muhtar Kent, Coke’s Chairman and Chief Executive Officer said in a press release. “We will leverage the strengths and capabilities of the four largest producing bottlers in our U.S. system, CCR, Consolidated, United and Swire to operate as one highly aligned and highly competitive national product supply system.”
Coke has been divesting itself of other assets since 2013, including delivery trucks and warehouses in the United States and bottling assets abroad.