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Retailers, consumers and prices

Check Out Line: Coke’s actions speak louder than its words

February 25, 2010

coke1Check out Coke’s about face on its relationships with one of its bottlers.

Coke plans to buy the North American operations of its largest bottler, Coca Cola Enterprises, in a substantially cashless deal that would let it cut costs and be more flexible in its distribution.

The announcement of the deal comes just as Coke rival PepsiCo is about to close its own $7.8 billion purchase of its largest bottlers, Pepsi Bottling Group and PepsiAmericas. It also reverses Coke’s previous stance, spelled out in repeated comments over the past several months, that its current relationship with its bottlers was just fine and it didn’t need to copy Pepsi.

Coke CEO Muhtar Kent said last April when the Pepsi deal was first announced that its franchise model was the best way to go and repeated that stance again in July, September and December.

Also in the basket:

Dr Pepper Snapple tops view despite sales slump

Kohl’s profits up but outlook below expectations

Heinz third-quarter sales up 12.6 percent

BAT sees signs of recovery as earnings rise

Tim Hortons profit rises, boosts dividend

Carter’s Q4 beats estimates, sees growth in 2010

(Reuters photo)


M&A is up big time across the globe and jobs are taking it on the chin because of it. Look at pharma/insurance/energy sectors. Jobs have been hit hard from M&A. If I worked for CCE, I’d be worried about my job.

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