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21St Century Beverage Partnership Model Update

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21St Century Beverage Partnership Model Update the BottlingLine Issue No. 325 • Summer/Fall 2015 21st Century Beverage Partnership 2015 Schedule Model Update CCBA Annual Meeting The Coca-Cola System of the Future is on the march. In June, our Aug 17-18 system officially welcomedCoca-Cola Beverages Florida, and its System of the Future leader Troy Taylor, as well as Great Lakes Coca-Cola Distribution, CCNA System Planning LLC, a wholly-owned subsidiary of Reyes Holdings, L.L.C., (owned Meeting by brothers Christopher and Jude Reyes). Aug 19-20 Also during the second quarter, additional steps toward implementation of the Company’s goal CLC Meeting to refranchise two-thirds of Company-owned U.S. Bottler-delivered volume by the end of 2017, August 26-27 took shape when new letters of intent (LOIs) were penned with nine CCBA Member Bottlers. With these new LOIs, four of the original five expanding Bottlers are set to acquire additional Mainstream Call territory and five new expanders have been designated. In total, territories transitioned to-date September 2 or covered by agreements to transition, represent ~25% of total U.S. bottle/can volume. CCBA Fall Board Meeting continued page 2 October 1 - 2 CLC Meeting A Monster of an Opportunity… October 20-21 A conversation with Andrew Wilkinson, Monster Energy Mainstream Meeting October 27-28 VP, US Coca-Cola System Fall Risk/Financial Monster Energy is now a long-term partner with our Coca-Cola System. As part of this partner- Management Seminar ship, CCBA wanted to introduce our Members to the person who will be leading and support- November 18-20 ing our bottling network as we accelerate our growth in this expanding category. New Orleans, LA After an 11 year career with Delta Air Lines, Andrew joined The Coca-Cola Company in 2006 - working in Coca-Cola North America BMAG Meeting finance on the Dasani business, progressively moving into Strategy & November 18-19 Planning for CCNA, Still Beverage Commercial Leadership and gla- ceau Revenue Growth Management. It was during the CCE acquisi- CLC Meeting tion and the creation of CCR, when Andrew, serving as CCR’s VP of December 9-10 Commercialization for the glaceau business unit, was first exposed to Mainstream Call Monster. December 16 Andrew’s team was responsible for integrating the Monster channel plans with the NOS/Full Throttle channel plans to: 1) develop one Energy channel plan for Coke Bottlers with all three brands and 2) develop a different Energy channel plan for Coke Bottlers that only had NOS and Full Throttle. This presented an interesting challenge, partnering with Monster in half the continued page 3 21st Century Beverage Partnership Model Update...............(continued from page 1) • Clark Beverage Group, Inc. – will assume new markets • Chesterman Company will assume new territory in in Mississippi Nebraska and western Iowa, including the Omaha and Lincoln markets • Coca-Cola Bottling Co. Consolidated – will assume new markets in Delaware, the District of Columbia, Illinois, • The Odom Corporation will assume new territory in the Indiana, Kentucky, Maryland, North Carolina, Ohio, Hawaiian Islands including Oahu, Hawaii, Kauai, and Pennsylvania, Virginia and West Virginia Molokai • The Ozarks Coca-Cola Bottling Company will assume • Coca-Cola Bottling Company High Country will as- new territory in Missouri, northern Arkansas and south- sume additional territory in South Dakota, North Dakota east Kansas (including the Fargo and Bismarck markets), and Min- nesota These new transactions are of course, subject to the parties reaching definitive agreements. • Coca-Cola Bottling Company United will assume ad- ditional territory in Louisiana, including the New Orleans We also want to share that Corinth Coca-Cola Bottling and Shreveport markets, and territory in the Tallahassee, Works, Inc. completed its territory expansion into the West Florida market. Specifically - Alexandria, Monroe, New Tennessee market with the addition of 13 zip codes in and Iberia, New Orleans and Shreveport, LA; Natchez, MS; around the Dyersburg, Ripley, Covington, and Brownsville Tallahassee, FL and Valdosta, GA communities. These expanded territory rights effectively complete all refranchising plans that were originally an- • Swire Coca-Cola USA will assume additional territory in nounced in 2013. Arizona, including the Phoenix and Tucson markets Congratulations and compliments to CCBA Members par- • Atlantic Coca-Cola Bottling Company will assume new ticipating in this process. We will keep the Association’s territory in Iowa and southern Minnesota Membership updated on progress! 2 A Monster of an Opportunity…A conversation with Andrew Wilkinson, Monster Energy VP, US Coca-Cola System........................(continued from page 1) country and competing against Monster in the other half of the U.S. market. However, this turned out to be an ideal staging platform for what was to come. Andrew shared how he actually had mixed emotions when the Monster deal was initially announced. As a KO share- holder, he applauded the decision to partner with Monster 2) Driving On-Premise availability of Monster’s top SKUs as the exclusive energy play for the Coke system; however, (Monster Green, Lo Carb, Ultra White, Java Mean Bean as a passionate advocate for the growth potential of the and NOS Blue). I truly believe the Coca-Cola Bottling Energy category – he was disappointed that Coca-Cola system is the world’s best beverage distribution system and was selling all Company owned Energy brands and would that our Monster brands could gain access to 100,000 new no longer be actively competing in the Energy category. outlets in the U.S. over the next few years.” Then fate intervened a few months later when he ended up When asked about transition challenges, and how we can joining Monster Energy – as VP, U.S. Coca-Cola System. work optimally through our current processes and systems, Andrew expressed how he genuinely enjoys working he shared “One of the largest hurdles to clear during the with Coca-Cola Bottlers. Each represents a unique set distribution transition has been accurate demand forecast- of consumer, customer and competitive dynamics. He ing in new Bottler territories. Historically, due to the relative added: “Our system is filled with an incredible collection of size of the NOS and Full Throttle business, there was lim- talented, caring and genuine people. Although we haven’t ited focus on Energy sales forecasting. However, the sales always agreed with each other, the respect for each other velocity of top Monster SKUs and the lift from ad promo- and passion for our business is truly special.” tions have caught some Bottlers short on inventory, result- ing in rushed loads and some out of stocks. Better con- When asked about the two greatest opportunities for our nectivity between the Monster sales team and the Bottlers Bottlers during this exciting time, he said: “The two biggest – along with Bottler route adjustments – should improve opportunities I see for our business are: overall service levels for our customers – and maximize the profit potential for our system.” 1) Additional incremental shelf space for our Monster portfolio…..We have a great selling story for our retail cus- Andrew and the Monster field sales teams are working tomers: consistent double digit category revenue growth, with each Coca-Cola Bottler to on-board them to Monster high margins, #1 brand status, new innovation and brand brands and processes, share best practices and capture families that target many different consumers and con- incremental sales opportunities. “We are excited to be long- sumption occasions. The Energy category is still an emerg- term partners with Coca-Cola Bottlers and we look forward ing category with high growth potential. building our business together with you!” Truckin’ - A New Approach to Training Are you looking for a way to promote a culture of safety in your Com- pany workplace? Are you looking to add engagement and impact to your warehouse and plant training activity? Scan the code to view this video of Odom Company warehouse employees participating in a Forklift Driving Championship. The Safety management team at Odom also implemented a similar competition for its truck drivers. A big takeaway that participants AND the audience is able to see firsthand --- is that Pictured is this year’s winner of the precision and planning in operating their vehicle outweighs the perceived advan- Forklift Rodeo, Shane Bresler of tages of speed. If you would like to learn more and/or are interested in implementing The Odom Corporation something similar in your organization, contact Linda Peluso, [email protected]. 3 A Coca-Cola Celebration with Special Meaning to Our Bottling System --The Contour Bottle 100th Birthday Celebration Continues! The following continues CCBA coverage of the by REM and the Talking Heads and was invited to represent Centennial Anniversary of the Coca-Cola Bottle and American art at the Venice Biennale. He became the best- shares an edited summary of several news articles known folk artist since Grandma Moses. Johnny Carson written about artist Howard Finster, known for his even invited him to appear on “The Tonight Show,” where interpretations of the icon we celebrate. he played the banjo. The Coca-Cola bottle looms “Howard Finster’s art is a fanciful mixture of religious mes- large as a cultural icon, but sages and imagery, personal stories, historical figures and nowhere does it stand taller celebrities,” explains Craig Lovin, creative director of the than in the work of the folk artist World of Coca-Cola. “And Howard Finster loved Coca- Howard Finster, who dedicated Cola. According to people who knew him, he didn’t drink dozens of pieces to it over his coffee or alcohol, but he frequently enjoyed a Coke while he prolific career. was painting, and he often featured the iconic bottle shape in his artwork.” Howard Finster was born in 1916 in Alabama.
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