Wide-Ranging Interview Covers Distribution Complexity, "Significant' Planned Production Investment, E-Commerce and More
February 7, 2020
Late last year, Coca-Cola Bottling United opened a new $86 million sales and distribution center in the metro Atlanta town of Union City, just south of Coca-Cola headquarters. The 456,000-sq-ft facility serves 10,000 retail customers in metro Atlanta, covering 2.8 million consumers. As many as 750 employees will manage the warehousing, picking and delivery of 36 million beverage cases per year. Manual order picking has been converted to an automated process built by System Logistics. Marketed as “Vertique,” the system is “an organized, more ergonomic and efficient sequential operation, with less stress on associates and not as labor intensive,” according to Coke United (click HERE for a video of the system). The Union City facility is among a series of investments by Coke United to modernize its distribution system since acquiring new territory, including Coke’s flagship metro Atlanta market in 2017. Last month, Coke United broke ground for construction of a $60 million, 300,000-sq-ft warehouse and sales center in the South Georgia town of Tifton, about an hour’s drive from the Georgia-Florida line. The facility will consolidate inventory from eight older and smaller facilities into a single automated order picking location when it opens by the end of 2021. Birmingham, Alabama-based Coke United, with franchise roots dating back to 1902, covers territory in Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee. The company is Coca-Cola’s fourth largest US franchise bottler (after Coke Consolidated, Reyes Holdings and Arca’s Coke Southwest Beverages). United distributes 11% of Coca-Cola system bottle/can carbonated soft drink volume in US. Last week, Coke United CEO John Sherman and East Region VP Mike Succo joined officials at the new Union City center for a grand opening attended by Coca-Cola North America President Jim Dinkins. BD sat down for an interview with Sherman.
The following has been edited for clarity and space:
Pricing Gains in Most Categories. Coke, PepsiCo, Keurig Dr Pepper Lose LRB Share
February 7, 2020
BD will soon publish 2019 all-channel sales data for the US liquid refreshment beverage (LRB) market, including both packaged and fountain products. The tables below and on page 2 provide a preliminary look at the results for last year...
Plant-based Drinks to Spur Cold Supply Chain Investment
January 21, 2020
Today’s beverage consumer is a study in “conflicting needs,” according to a new report by KPMG. “Consumers are increasingly focused on finding shortcuts to address their desired needs,” the report’s authors wrote. “When this comes to beverage choices...
Most beverage and retailer stocks tracked by BD boosted their market value during 2019 as the broader S&P 500 Index grew. Just three companies tracked – Coca-Cola Consolidated, Starbucks and Monster Beverage...
Plus, Coke Now 100% Owner as Brand Turns Corner on Animal Abuse Controversy
January 21, 2020
Coca-Cola-owned dairy company Fairlife is considering a new ice cream or frozen yogurt, according to recent US trademark applications. The products, as contemplated by the filings, would carry the same Fairlife name and cow face icon used on the brand’s products including filtered milks and protein shakes such as Core Power. The innovation would mark the company’s first departure from beverages since it was founded in 2012...
Interim CEO Bello Looks to Take on Canada Dry Directly
January 21, 2020
Reed’s, which made its name selling high-intensity ginger beers, is looking to capitalize on a much bigger and faster-growing category: ginger ale. The company is readying ...
Coke Zero Sugar Now Bigger Than Diet Mtn Dew. Plus, Coke Life Volume Down -26%.
January 21, 2020
Coke Zero Sugar was last year’s star growth performer at retail among the 10 largest US carbonated soft drinks (CSDs). As shown in the Green Sheetattached to this article, the brand posted dollar growth of almost...
Coca-Cola’s Powerade will reassert itself in the US this year with increased marketing and advertising spending, and two major product introductions. A new Powerade Power Water will go head-to-head with PepsiCo’s Propel fitness water for the first time since Propel’s introduction 20 years ago. Like Propel, the sugar-free electrolyte- and vitamin-enhanced Power Water will target lower-impact workout occasions or casual daily hydration. The second new product, Powerade Ultra, will focus on endurance workouts ranging from triathlons to body building...
Sees No Dr Pepper Move from KO, PEP; Opportunity in Energy, Hydration; Strong Allied Brand Strategy.
December 17, 2019
Keurig Dr Pepper Chief Commercial Officer Derek Hopkins has been as close as anyone to the merger of Keurig Green Mountain and Dr Pepper Snapple. Hopkins served as chief integration officer for the transaction and before that was president of Keurig Green Mountain’s US business. His experience in the global beverage industry is deep, with stints at Coca-Cola, AB InBev, Bacardi and Guiness Diageo. The following is a recap of his Future Smarts conference interview in Dec. 9 in New York.
Says ‘Absolutely’ Could Support ‘Transparent’ Bottle Bill. On SodaStream US: ‘Just Grow It.’
December 17, 2019
In October, Simon Lowden was named PepsiCo’s first chief sustainability officer. The job made sense for Lowden, whose 23 years at PepsiCo has included leadership posts in food, beverage and international. Lowden’s most recent prior role was as president of PepsiCo Global Foods. Previous roles have included chief marketing officer for PepsiCo North America Beverages and before that PepsiCo International.
This story is a recap of highlights from his Future Smarts conference appearance Dec. 9 in New York.