PepsiCo to swap franchise ownerships with independent bottlers in US
PepsiCo is set to swap bottling franchise ownerships in New York, North Carolina, Idaho and Vermont with its two US-based independent bottlers - Pepsi Bottling Ventures (PBV) and Honickman Group's Pepsi-Cola Bottling (PCNY).
As part of this agreement, PepsiCo will transfer the ownership of its bottling operations in five counties of North Carolina territory to PBV in exchange for PBV's 11 counties in Vermont and 18 counties in Idaho.
PepsiCo Americas Beverages CEO Al Carey said: "Combining contiguous territories to build regional strength makes sense, particularly in New York and North Carolina, where the synergies are clear."
PBV president and CEO Paul Finney said: "This acquisition will allow us to significantly expand our footprint in the Carolinas while adding scale and leveraging our operating capability across PBV's regional core."
PCNY will acquire Long Island, New York territory, including Nassau and Suffolk counties from PBV as part of this partnership.
Honickman Group's PCNY chairman Harold Honickman Said: "Nassau and Suffolk counties provide the requisite scale for us to reinvest significantly in our make-sell-deliver capabilities and partner with PepsiCo to proudly reinvigorate our presence in the greater New York market."
PCNY currently operates in five boroughs of New York City - Manhattan, the Bronx, Brooklyn, Queens and Staten Island - and New York's Westchester County.
The transaction is expected to close in the second quarter of 2013.