Coca-Cola Company gives Delta Beverages notice of intention to terminate bottler’s agreements

The Coca-Cola Company (TCCC) has given notice of its intention to terminate the bottler’s agreements with Delta Beverages and its associate Schweppes Holdings Africa Limited. This follows the combination of Anheuser-Busch InBev NV/SA (AB InBev) and SABMiller Plc. Delta and its associate Schweppes produce and sell TCCC brands under bottler’s agreements with TCCC.

AB InBev is a key Pepsi Beverages bottler in Latin America while SABMiller dominated Coke’s bottling in Africa. Not only are Coca-Cola and PepsiCo global rivals, but international reports often speculate that Coke is one of the eventual takeover targets of the ever-acquisitive AB InBev.

In a statement Delta said,