Coca-Cola Co. plans to sell nine U.S. production facilities with a combined book value of about $380 million to three bottling companies that manufacture the beverage giant’s drinks, part of a plan to streamline operations and cut costs.
The facilities, which include Coca-Cola’s York Street facility in Denver, would be sold to Coca-Cola Bottling Co. Consolidated, Coca-Cola Bottling Company United and Swire Coca-Cola U.S., according to Atlanta-based Coca-Cola in a statement Thursday. The deals are subject to the companies reaching definitive agreements.
Under the agreements, Swire will acquire production facilities in Denver and Phoenix; Consolidated will take over facilities in Sandston, Va., Baltimore, and Silver Spring, Md.; and United will acquire the facility in New Orleans.
has facilities across Colorado in cities including Grand Junction, Glenwood Springs and Colorado Springs. The Coca-Cola plant at 3825 York St. will be critical to the company’s operations in the state, said Jeff Edwards, Swire’s senior vice president of supply chain.
“It basically is the producing plant for all that volume for us on the Front Range,” he said.
About 125 employees work at the facility, according to Coca-Cola.
Coca-Cola CEO Muhtar Kent has been working to cut $3 billion in annual expenses as changing consumer tastes in the U.S. hurt soda sales. As part of the bottling divestitures announced Thursday, the company will implement a National Product Supply System that will aim to produce beverages at the lowest cost.
Coca-Cola (NYSE: KO) was up 0.13 percent in trading Thursday morning. The shares have slid 8.2 percent this year.
Denver Post Writer Alicia Wallace contributed to this report.
