The CocaCola Company said it has agreed to cede distribution of its brands to Reyes Holdings LLC for territories in California and Nevada.
The agreement will cover major metropolitan markets of Los Angeles, San Francisco, San Diego and Las Vegas.
The company said in an official statement that in agreement with the proposal, Reyes Holdings signed its first letter of intent for Coca-Cola territory in February 2014. Reyes went on to launch Great Lakes Coca-Cola Distribution LLC, which serves parts of six states in the Midwest, including the cities of Chicago, Detroit, Minneapolis and Milwaukee.
The letter of intent announced today involves the West Operating Unit of Coca-Cola Refreshments, which is part of The Coca-Cola Company. Reyes Holdings already has extensive operations in California and Nevada, including Reyes Beverage Group, the largest beer distribution operation in the United States, and The Martin-Brower Company LLC, a global food service distributor servicing McDonald’s and other high-quality brands.
With the addition of more territory, Reyes Holdings, which is based in Rosemont, Ill., will serve as a Coca-Cola bottler in parts of eight states.
“We chose Reyes Holdings as our new partner in California and Nevada because they are a long-term operator that is well positioned to invest in this local business and help us grow our total portfolio of brands,” said J. Alexander “Sandy” Douglas Jr., President, Coca-Cola North America. “We are very pleased that Reyes Holdings will expand its already significant role in the U.S. Coca-Cola system.”
“It’s been exciting being part of the Coca-Cola system in the Midwest, and we see tremendous opportunity with this territory expansion into the Western U.S.,” said Chris Reyes, founder and co-Chairman of Reyes Holdings.
“We look forward to being the best local Coca-Cola bottler and distributor we can be in communities across California and Nevada, while at the same time contributing back to the places in which we operate,” added Jude Reyes, founder and co-Chairman of Reyes Holdings.
“The letter of intent announced today is the first step in the process. The next stage is a definitive agreement, followed by a closing”, the statement said