Larry Tanenbaum and Junior Bridgeman to Form
Canadian Joint Venture to Acquire Coca-Cola Refreshments
Canada
Final Non-Binding Agreement Will Complete
Refranchising of Company-Owned Bottling Operations in North
America
The Coca-Cola Company today announced that Larry Tanenbaum O.C.
and Junior Bridgeman have signed a non-binding Letter of Intent to
acquire the company’s Canadian bottling and distribution business,
Coca-Cola Refreshments Canada (CCRC).
The acquirer will be a Canadian-based joint venture between
Tanenbaum, a prominent Canadian businessman and philanthropist, and
Bridgeman, a former NBA player, renowned entrepreneur and current
President and CEO of Kansas City-based Heartland Coca-Cola Bottling
Company. Each bring a distinct set of skills and expertise to the
partnership that will support the long-term growth and success of
the Coca-Cola business in Canada.
“Coca-Cola has been refreshing Canadians for more than 120 years
and it was important for us to find the right partners that
understand our business and the Canadian market,” said Jim Dinkins,
President of Coca-Cola North America. “Junior Bridgeman was a proud
customer of The Coca-Cola Company for more than 30 years before
investing in our system as a bottler, demonstrating his passion for
our business and our brands. When you combine that with Larry
Tanenbaum’s successful track record and deep Canadian roots, this
is the perfect partnership to continue to build our business in
Canada with a highly local approach.”
Tanenbaum’s business, The Kilmer Group, has a longstanding
history of building successful businesses throughout Canada, in
areas as diverse as sports and media, and real estate and
infrastructure. Additionally, Tanenbaum serves as chairman of Maple
Leaf Sports & Entertainment, the owners of the Toronto Maple
Leafs, Toronto Raptors, Toronto FC, Toronto Argonauts and the Air
Canada Centre. He is also chairman of the Board of Governors of the
National Basketball Association, and serves as a governor of the
National Hockey League and Major League Soccer.
“As a lifelong fan of Coca-Cola, I am delighted to be joining
the Coca-Cola system,” said Larry Tanenbaum. “I have seen the
company evolve over the years and know there is tremendous growth
potential for The Coca-Cola Company’s broad range of brands in the
Canadian market. There is already a strong foundation and I look
forward to working alongside Junior to continue to build the
business through great brands, strong local execution and
exceptional customer service.”
Junior Bridgeman joined the Coke bottling system in 2017 with
the formation of Heartland Coca-Cola, covering territories in
Kansas, Missouri and Southern Illinois. Prior to this, Junior
created and led one of the largest restaurant franchise operators
in the United States, Manna Inc., based in Louisville, Ky. He also
had a 12-year career as a professional basketball player in the
NBA.
“Coca-Cola has been a big part of my life and I am excited for
this opportunity to be part of the Canadian business,” said Junior
Bridgeman. “Larry and I are committed to building on the traditions
of The Coca-Cola Company while leveraging our heritage of putting
people first, serving our local communities, and refreshing
Canadians from coast to coast to coast.”
Added Shane Grant, business unit president of The Coca-Cola
Company in Canada: “Looking to the future of Coca-Cola in Canada,
we could not ask for better partners than Larry and Junior. We
already have a strong foundation with The Kilmer Group through its
various holdings, and this new partnership will provide unique and
unprecedented opportunities as we continue to accelerate the growth
of our business.”
CCRC employs approximately 5,800 associates and operates five
production facilities and over 50 sales and distribution centres.
CCRC conducts business in all 10 provinces and three
territories.
This non-binding Letter of Intent initiates the final step to
complete the refranchising of all of
The Coca-Cola Company’s company-owned bottling operations
in North America. In October 2017, the company announced the
completion of refranchising in the United States.
The letter of intent announced today is subject to the parties
reaching definitive agreements. The parties are committed to
working together to implement a smooth transition with minimal
disruption for customers, consumers and system associates.
Financial terms were not disclosed.
The transaction is expected to close in the second half of
2018.
21st Century Beverage Partnership Model
History
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.
Since the closing of the transaction involving the North
American territories of Coca-Cola Enterprises,
The Coca-Cola Company has accelerated the implementation
of the new model by strategically addressing the bottling system,
customer service, product supply and a common information
technology platform.
Ultimately, the Coca-Cola system in North America will
be comprised of economically aligned bottling partners that have
the capability to serve major customers, coupled with the ability
to maintain strong, local ties across diverse markets in the United
States and Canada.
About The Coca-Cola
Company
The Coca-Cola Company (NYSE: KO) is the world’s largest total
beverage company, offering over 500 brands to people in more than
200 countries. Of our 21 billion-dollar brands, 19 are available in
lower- and no-sugar options to help people everywhere more easily
control added sugar. In addition to our namesake Coca-Cola drinks,
some of our household names around the world include: AdeS
soy-based beverages, Ayataka green tea, Dasani waters, Del Valle
juices and nectars, Fanta, Georgia coffee, Gold Peak teas and
coffees, Honest Tea, Minute Maid juices, Powerade sports drinks,
Simply juices, smartwater, Sprite, vitaminwater, and Zico coconut
water. At Coca-Cola, we’re serious about making positive
contributions to our world. That starts with reducing sugar in our
drinks and bringing new and different drinks to people everywhere.
It also means continuously working to reduce our environmental
impact, creating rewarding careers for our associates, and bringing
economic opportunity wherever we operate. In fact, together with
our bottling partners, we employ more than 700,000 people around
the world. For more information, visit our digital magazine
Coca-Cola Journey at www.coca-colacompany.com and follow The Coca-Cola
Company on Twitter, Instagram, Facebook and LinkedIn.
About Tanenbaum and
Bridgeman
The acquirer is a partnership between Canadian philanthropist
and business leader, Larry Tanenbaum O.C., and NBA legend and
successful Kansas City-based Heartland Coca-Cola Bottling Company
owner, Junior Bridgeman. Tanenbaum and Bridgeman are both
remarkable entrepreneurs who are committed to the betterment of
their communities, and who invest with a multi-generational
perspective and a long term horizon of vision. For more information
about Bridgeman’s Heartland Coca-Cola Bottling Company please visit
www.heartlandcocacola.com and for more information about
Tanenbaum’s Kilmer Group, please visit www.kilmergroup.com.
Forward-Looking
Statements
This press release may contain statements, estimates or
projections that constitute “forward-looking statements” as defined
under U.S. federal securities laws. Generally, the words “believe,”
“expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and
similar expressions identify forward-looking statements, which
generally are not historical in nature. Forward-looking statements
are subject to certain risks and uncertainties that could cause
actual results to differ materially from The Coca-Cola Company’s
historical experience and our present expectations or projections.
These risks include, but are not limited to, obesity and other
health-related concerns; water scarcity and poor quality; evolving
consumer preferences; increased competition; product safety and
quality concerns; perceived negative health consequences of certain
ingredients, such as non-nutritive sweeteners and
biotechnology-derived substances, and of other substances present
in our beverage products or packaging materials; an inability to be
successful in our innovation activities; increased demand for food
products and decreased agricultural productivity; an inability to
protect our information systems against service interruption,
misappropriation of data or breaches of security; changes in the
retail landscape or the loss of key retail or foodservice
customers; an inability to expand operations in emerging and
developing markets; fluctuations in foreign currency exchange
rates; interest rate increases; an inability to maintain good
relationships with our bottling partners; a deterioration in our
bottling partners' financial condition; increases in income tax
rates, changes in income tax laws or unfavorable resolution of tax
matters; increased or new indirect taxes in the United States and
throughout the world; failure to realize the economic benefits from
or an inability to successfully manage the possible negative
consequences of our productivity initiatives; inability to attract
or retain a highly skilled and diverse workforce; increased cost,
disruption of supply or shortage of energy or fuels; increased
cost, disruption of supply or shortage of ingredients, other raw
materials, packaging materials, aluminum cans and other containers;
changes in laws and regulations relating to beverage containers and
packaging; significant additional labeling or warning requirements
or limitations on the marketing or sale of our products;
unfavorable general economic conditions in the United States;
unfavorable economic and political conditions in international
markets; litigation or legal proceedings; failure to adequately
protect, or disputes relating to, trademarks, formulae and other
intellectual property rights; adverse weather conditions; climate
change; damage to our brand image or corporate reputation from
negative publicity, even if unwarranted, related to product safety
or quality, human and workplace rights, obesity or other issues;
changes in, or failure to comply with, the laws and regulations
applicable to our products or our business operations; changes in
accounting standards; an inability to achieve our overall long-term
growth objectives; deterioration of global credit market
conditions; default by or failure of one or more of our
counterparty financial institutions; an inability to renew
collective bargaining agreements on satisfactory terms, or we or
our bottling partners experience strikes, work stoppages or labor
unrest; future impairment charges; multi-employer pension plan
withdrawal liabilities in the future; an inability to successfully
integrate and manage our Company-owned or -controlled bottling
operations or other acquired businesses or brands; an inability to
successfully manage our refranchising activities; failure to
realize a significant portion of the anticipated benefits of our
strategic relationship with Monster; global or regional
catastrophic events; and other risks discussed in our Company’s
filings with the Securities and Exchange Commission (SEC),
including our Annual Report on Form 10-K for the year ended
December 31, 2017, which filings are available from the SEC. You
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. The Coca-Cola
Company undertakes no obligation to publicly update or revise any
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20180309005079/en/
Coca-Cola CanadaShannon Denny,
647-637-2574sdenny@coca-cola.comorKilmer GroupIsabelle
Poirier, 647-282-6751ipoirier@kilmergroup.comorHeartland
Coca-Cola Bottling CompanyNorman Ross,
954-401-9540nross@heartlandcocacola.com
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