Coca-Cola sells production plants to overhaul US supply chain

By Admin
Stay Connected! Follow @MrNLon and @SupplyChainD on Twitter. Global beverage giant Coca-Cola is planning to sell nine of its US-based production plants...

Stay Connected! Follow @MrNLon and @SupplyChainD on Twitter.

Global beverage giant Coca-Cola is planning to sell nine of its US-based production plants as part of new measures which will see the company cut costs significantly through creating a new supply system.

The Wall Street Journal reported that the plants in question 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.

RELATEDCoca-Cola-Enterprises keeping the Christmas cheer flowing

In a recent press release, Muhtar Kent, Coke’s Chairman and Chief Executive Officer said: “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

“We will leverage the strengths and capabilities of the four largest producing bottlers in our US system, CCR, Consolidated, United and Swire to operate as one highly aligned and highly competitive national product supply system.”

The company has been pursuing divestment since 2013, in which time it has sold off delivery trucks, warehouses and bottling assets.  

Read the September Issue of Supply Chain Digital. 

SOURCES: [Wall Street Journal; Fortune]

Share

Featured Articles

Blockchain strengthening links in supply chain

Though use of blockchain solutions in supply chain is still relatively low, Tech Mahindra is among pioneers driving its adoption

Earthquake tech inspired Partsch to invent SCM in 1970s

In the late 1970s, physicist Dr Wolfgang Partsch - the father of supply chain management - used science as the basis for his revolutionary concept of SCM

SaaS bloat 'hitting procurement bottom lines'

Unused SaaS subscriptions are eroding procurement and supply chain bottom lines at a time when inflation means cost cutting is of paramount importance

Cold chain logistics 'flying blind' - Tive & FreightWaves

Technology

Logistics innovation 'hampered by C-suite, cash & staffing'

Digital Supply Chain

Biden appoints new supply chain risk cyber chief

Supply Chain Risk Management