The Coca-Cola Co. plans to sell nine U.S. production facilities with a combined value of about $380 million to three bottling companies that help make its drinks, part of a plan to cut costs and streamline operations.
The beverage company said it has preliminary agreements to sell the plants to Coca-Cola Bottling Co. Consolidated, Swire Coca-Cola U.S., and Coca-Cola Bottling Co. United. The deals, expected to take effect from 2016-18, are subject to the companies reaching definitive agreements, Atlanta-based Coca-Cola said Thursday in a statement.
Coca-Cola Chief Executive Officer Muhtar Kent has been working to cut $3 billion in annual expenses as changing consumer tastes in the U.S. hurt soda sales. Divesting the bottling operations lets Coca-Cola focus on the more profitable business of selling concentrates and syrups to the companies that manufacture, package and distribute the drinks.
Coca-Cola also said Thursday that it will start a National Product Supply System with its bottlers. The organization will work on infrastructure planning, sourcing and cost controls, giving Coca-Cola the benefit of centralized bottling operations without the expense of actually owning them.
Coca-Cola shares rose 39 cents, or 1 percent, to close Friday at $39.15.