Reyes Holdings Acquires Distribution Rights to Coca-Cola in …
Reyes Holdings LLC has signed a letter of intent with The Coca-Cola Company to acquire the distribution rights for the soda giant’s products in California and Nevada as well as three bottling facilities.
“We chose Reyes Holdings as our new partner in California and Nevada because they are a long-term operator that is well positioned to invest in this local business and help us grow our total portfolio of brands,” Coca-Cola North America president J. Alexander “Sandy” Douglas Jr. said in a press release. “We are very pleased that Reyes Holdings will expand its already significant role in the U.S. Coca-Cola system.”
“It’s been exciting being part of the Coca-Cola system in the Midwest, and we see tremendous opportunity with this territory expansion into the Western U.S.,” Chris Reyes, founder and co-chairman of Reyes Holdings, added.
Financial terms of the deal were not disclosed. The next step for the parties is a definitive agreement, which will follow after closing.
The move is part of Coca-Cola’s initiative to refranchise all of its bottling territories by the end of the year.
The transaction adds to Reyes Holdings’ existing operations in California and Nevada, which includes the Reyes Beverage Group, the United States’ largest beer wholesaler operation, and the Martin-Brower Company LLC, a food service distributor servicing McDonald’s and other brands.
Reyes Holdings is now a Coca-Cola bottler in parts of eight states, including a large swath of the Midwest and West. The new deal, involving the West Operating Unit of Coca-Cola Refreshments, includes the Los Angeles, San Francisco, San Diego and Las Vegas markets.
Recall that Reyes Holdings made its first major move outside of the beer category in February 2014 by striking a deal for Coca-Cola’s distribution rights in Chicago as well as Northwest Indiana and Southeast Wisconsin.
In April 2016, Reyes Holdings’ Great Lakes Coca-Cola Distribution LLC made its first foray into production by acquiring facilities in Alsip and Niles, Ill.; Detroit and Grand Rapids, Mich.; Eagan, Minn.; and Milwaukee, Wisc.
Read the full press release below.
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Reyes Holdings to Expand Its Footprint in U.S. Coca-Cola System by Adding Territory in California and Nevada
Reyes Holdings to Operate in Eight States, with Territories in Large Portions of the Midwest and West; Expansion Into California and Nevada Includes Three Bottling Facilities
Coca-Cola Has Reached Definitive Agreements or Signed Letters of Intent to Refranchise Bottling Territories that Account for More Than 80% of Total Coca-Cola Refreshments Volume
Atlanta — Reyes Holdings LLC – one of the largest food and beverage distribution companies in the world – has reached a new letter of intent with The Coca-Cola Company for territory in California and Nevada, including the major metropolitan markets of Los Angeles, San Francisco, San Diego and Las Vegas.
Reyes Holdings signed its first letter of intent for Coca-Cola territory in February 2014. Reyes went on to launch Great Lakes Coca-Cola Distribution LLC, which serves parts of six states in the Midwest, including the cities of Chicago, Detroit, Minneapolis and Milwaukee.
The letter of intent announced today involves the West Operating Unit of Coca-Cola Refreshments, which is part of The Coca-Cola Company. Reyes Holdings already has extensive operations in California and Nevada, including Reyes Beverage Group, the largest beer distribution operation in the United States, and The Martin-Brower Company LLC, a global food service distributor servicing McDonald’s and other high-quality brands.
With the addition of more territory, Reyes Holdings, which is based in Rosemont, Ill., will serve as a Coca-Cola bottler in parts of eight states.
“We chose Reyes Holdings as our new partner in California and Nevada because they are a long-term operator that is well positioned to invest in this local business and help us grow our total portfolio of brands,” said J. Alexander “Sandy” Douglas Jr., President, Coca-Cola North America. “We are very pleased that Reyes Holdings will expand its already significant role in the U.S. Coca-Cola system.”
“It’s been exciting being part of the Coca-Cola system in the Midwest, and we see tremendous opportunity with this territory expansion into the Western U.S.,” said Chris Reyes, founder and co-Chairman of Reyes Holdings.
“We look forward to being the best local Coca-Cola bottler and distributor we can be in communities across California and Nevada, while at the same time contributing back to the places in which we operate,” added Jude Reyes, founder and co-Chairman of Reyes Holdings.
The letter of intent announced today is the first step in the process. The next stage is a definitive agreement, followed by a closing.
21st Century Beverage Partnership Model History
This agreement is part of a plan to refranchise all of The Coca-Cola Company’s U.S. bottling territories by the end of 2017.
The Coca-Cola Company began working with its bottling partners a decade 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. A critical step was the Company’s acquisition of the North American territories of Coca-Cola Enterprises in 2010, which led to the establishment of Coca-Cola Refreshments.
