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Sally Hargis is visiting Rolla this afternoon for a town hall meeting with staff concerning the proposed expansion.
Sally Hargis is visiting Rolla this afternoon for a town hall meeting with staff concerning the proposed expansion.

Ozarks Coca-Cola signs letter of intent for new territories

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Last edited 1:22 p.m., April 22, 2015

Ozarks Coca-Cola Bottling Co. signed a letter of intent with Atlanta-based The Coca-Cola Co. (NYSE: KO) to expand its franchise territory into northern Arkansas, southeast Kansas and adjoining parts of Missouri.

In the proposed deal, the 95-year-old Springfield bottling distributor would grow its business by 60 percent, said Sally Hargis, Ozarks Coca-Cola’s vice president of corporate strategy. The company serves 32 Missouri counties and some 850,000 consumers through distribution points in Springfield, Bolivar and Rolla.

The available territories, owned by Coca-Cola Co. subsidiary Coca-Cola Refreshments USA Inc., cover 37 counties with sales centers in Joplin and West Plains.

“The letter of intent today allows us to go into the facilities, meet the people, learn more about the territories and make the decision with a definitive agreement later this year or early 2016,” Hargis said, noting she’s headed to Rolla this afternoon for a town hall meeting with staff. “We want to know more about the territories, and we intend to make the purchase.”

Terms of the proposed deal were not disclosed in a news release, and Hargis said financial details would be ironed out over the next several months.

The move is part of the Atlanta corporation’s multiyear refranchising plan, dubbed the 21st Century Beverage Partnership Model.

Coca-Cola Co. officials plan to refranchise half of its company-owned U.S. bottler-delivered volume by 2018. The plan kicked off in 2013 with five bottlers granted additional territories operated by Coca-Cola Refreshments USA.

Ozarks Coca-Cola is among seven bottlers signing letters of intent in this latest round.

“As we continue to evolve our partnership model for growth, Ozarks Coca-Cola Bottling Co. brings deep, local knowledge and has demonstrated both outstanding commercial capabilities and consistent, sustainable success within their communities,” Coca-Cola North America President Sandy Douglas said in a news release.

Hargis said last year Ozarks Coca-Cola was ranked in the Top 10 of independent Coca-Cola bottlers nationwide.

Once a definitive agreement is signed with Ozarks Coca-Cola, which currently employs 300 associates, officials said transition dates would be set.

“For the first time, we’ll be crossing over state lines and doing business interstate,” Hargis said.[[In-content Ad]]

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