ATLANTA -- In the next phase of the refranchising of its bottling and distribution network, Coca-Cola Co. will grant territory in California and Nevada to Reyes Holdings LLC. This includes 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 latest letter of intent announced May 16 involves the West Operating Unit of Coca-Cola Refreshments, which is part of the Coca-Cola Co. 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 Co. LLC, a global foodservice distributor serving McDonald’s and other 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 of Coca-Cola North America, Atlanta.
“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.
The letter of intent is the first step in the process. The next stage is a definitive agreement, followed by a closing.
This agreement is part of a plan to refranchise all of the Coca-Cola Co.’s U.S. bottling territories by the end of 2017.
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