US: Coca Cola announces new bottler deals after strong Q1 | Progresiv
Coca-Cola Co has announced new deals with its North American bottlers, even as it reported its first rise in revenue for nine quarters. The group has previously said it will refranchise around two-thirds of its bottling operations in North America by 2017. Coca Cola noted it has signed new deals with seven US bottlers, giving them greater control of the operations, and putting it on track to meet that earlier goal. The deals are part of a new partnership model that will offer bottlers “more rational and contiguous operating territories”, while also granting them exclusive territory rights. 
The moves are part of the group’s aim to generate 3 billion dollars in cost savings annually by 2019. CEO Muhtar Kent noted: “We still have much to do, and the full benefits from the announced initiatives are going to take time to materialise”.
Meanwhile, the group said its first-quarter net profit was down 4.3% to 1.56 billion dollars, hurt by one-off costs, even as revenue grew by 1.3% to 10.7 billion dollars (+10% on an organic basis). Coca Cola noted that revenues were impacted by the strength of the US dollar, which offset rises in volumes. Globally, volumes of Diet Coke were down, although brands such as Coke Zero and Sprite recorded growth. (www.kamcity.com)
