Why did Pepsi buy its bottlers?

NEW YORK — PepsiCoPEP said Tuesday it is buying its two top bottlers for $7.8 billion in a bid to save money and get new products to market more quickly. The deals were sealed months after PepsiCo’s first offers were rejected and 10 years after PepsiCo first spun off its largest bottler, Pepsi Bottling Group.

Why did Coca-Cola buy its bottlers?

But Coke and its main rival, PepsiCo, have faced a slide in the demand for carbonated beverages in recent years. Reacquiring bottling operations is meant to give Coke greater flexibility in adapting to consumer tastes, like a move toward juice drinks and water.

Why do Coke and Pepsi companies have franchised bottlers?

In fact, both Pepsi and Coke have been increasingly hiving off the bottling side of their respective business to franchise bottlers across the globe. The brand is the high-value part of the business, which they are keeping with them.”

Why did Coca-Cola acquire CCE?

Sale of assets to The Coca-Cola Company Coca-Cola wanted the business in their asset list because they felt it would save both consumers and Coca-Cola money. Coca-Cola also spun off its small European bottling division to “New CCE”. The acquisition closed on October 3, 2010.

Does Coke own its bottlers?

The Coca‑Cola Company does not own, manage or control most local bottling companies. In our concentrate operations, The Coca-Cola Company typically generates net operating revenues by selling concentrates and syrups to authorized bottling partners.

Does Pepsi do its own bottling?

Pepsi Bottling Ventures does not own the formulas to most of the beverages we sell. Pepsi Bottling Ventures purchases the exclusive rights to make, sell, and distribute the beverages within its territory from the syrup companies, such as PepsiCo, Inc., which owns the formula rights.

When did coke buy its bottlers?

2010
In 2010, The Coca-Cola Company acquired the North American territories of CCE, which represented nearly 80 percent of our bottler-distributed business in our flagship market.

What was the financial reason s for spinning off CCE in 1986?

CCE itself was spun off from Coca-Cola in 1986 as a way to boost Coke’s profit margins and balance sheet by separating the capital-intensive, low-margin bottling business into a different company. CCE shareholders will own 48 percent of the new entity, with CCIP’s shareholders owning 34 percent.

What do Pepsi bottlers do?

The franchise companies are what folks often associate as Pepsi and The Coca-Cola Company. In general, these companies make and provide the drink concentrate for products, which they sell to bottlers. These companies then deliver the products to stores and other outlets.

Does Coca-Cola own its bottlers?

What sodas does coke own?

A Look at Every Company That Coca-Cola Owns

• Products: Coca-Cola, Diet Coke, Coke Zero, Flavored Coca-Cola/Diet Coke, Coca-Cola Energy.
• Products: Sprite, Sprite Zero Sugar, Sprite Cranberry.
• Products: Fanta Orange, Fanta Zero, Fanta Grape, Fanta Pineapple.
• Products: Dasani purified water.