Coca-Cola streamlines operations: Transfers bottling operations to franchise bottlers

Coca-Cola, has revealed plans to transfer its company-owned bottling operations in three regions—north, east, and northeast—to existing franchise bottlers. This strategic move aims to enhance supply chain efficiency and elevate operational standards, according to a statement from Hindustan Coca-Cola Beverages (HCCB), a subsidiary of The Coca-Cola Company.

As part of this transfer, Kandhari Global Beverages, including Enrich Agro Food Products and Kandhari Beverages, will take ownership of and operate the Rajasthan market. Currently, they are active in Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, and Ladakh. SLMG Beverages, operating in Uttarakhand, parts of Uttar Pradesh, Madhya Pradesh, and Bihar, will assume ownership and operation of the Bihar market.

Moon Beverages will own and operate the North-East market and select areas of West Bengal, expanding their current operations in parts of Delhi and Uttar Pradesh.

The objective of this initiative is to optimize the supply chain and enhance overall operational efficiency in these regions.

“This business transfer marks a significant decision for Hindustan Coca-Cola Beverages,” said Juan Pablo Rodriguez, CEO, HCCB India. “It ensures the right level of investments can be undertaken in all parts of the business, while bringing both scale and contiguity to the business. We are in the long-term growth prospects of our beverages business in India and believe this move will help accelerate the Coca‑Cola system, enabling us to win in the market and provide greater value to local communities.”

“We are committed to building stronger and more sustainable local businesses in India,” said Sundeep Bajoria, VP India operations, for Coca‑Cola India. “As we set ourselves for further growth in the Indian market, these transfers will direct investments into innovation, infrastructure, technical capabilities, talent acquisition and business expansion while strengthening existing capabilities to deliver unparalleled beverage experiences to our consumers.”

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