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:
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...
Pepsi Café. PepsiCo has announced a new coffee-infused cola to launch in April. Pepsi Café will be sold in 12-oz slim cans in original and vanilla for a limited time. The drink comes with almost twice the caffeine of a regular Pepsi, according to the company. The product appears to...
Pepsi Syrup for SodaStream. PepsiCo-owned SodaStream is now selling Pepsi-Cola and Mtn Dew
flavor syrups in Sweden and Norway for its at-home beverage maker. Other brands available are...
CSDs Accelerate. Carbonated soft drink dollar sales jumped +3.2% in the four weeks ended Oct. 5, according to Nielsen retail data published by Morgan Stanley. That was faster than the two-year...
This year's NACS trade show in Atlanta, with exhibits that covered the space of almost two football fields, offered a first look at innovation being sold into retailers for 2020. The products pictured are some of the newest innovations from Coke, PepsiCo, Keurig Dr Pepper and Nestle. These products mostly launch late this year and early next year.
Bodyarmor to Modify Approach or ‘Substantiate’ Claims, Agency Says
October 1, 2019
Bodyarmor sports drink has agreed to re-evaluate several of its advertising claims related to PepsiCo’s market-leading Gatorade following a dispute that reached the Federal Trade Commission. According to a Sept. 13 letter by the FTC, Bodyarmor has agreed to...
Pepsi to Push ‘Unapologetic Enjoyment.’ Dew to Invest in Core Markets. Gatorade to Take ‘Surgical Approach’ to Hot Weather. Bubly to Innovate.
September 17, 2019
PepsiCo brought together executives from its US bottling system in August to review new product and marketing plans for 2020. The company hosted the meeting at its Purchase, New York headquarters. Attendees included company-owned and independent franchise bottling executives. The gathering came six months after PepsiCo reorganized its North America beverage business into five divisions, four in the US and one in Canada. The meeting’s theme was...
Mtn Dew is one of three core beverage brands PepsiCo has pledged to turn around after share losses dating back to 2017. In a July 9 interview after PepsiCo reported second-quarter earnings, CFO Hugh Johnston said...