Published On: 04.01.16 | 

By: Michael Tomberlin

Birmingham-based Coca-Cola United buys Coke operations in New Orleans and New Iberia, La.

Mini Can Variety

With New Orleans, Birmingham's Coca-Cola Bottling Company United has added its largest Coke center. (Amy Sparks/The Coca-Cola Co.)

Birmingham’s Coca-Cola Bottling Company United Inc. has purchased the Coca-Cola Company territories in New Orleans and New Iberia, Louisiana, giving the company its largest distribution outlet.

The current territorial footprint for Birmingham's Coca-Cola United.

The current territorial footprint for Birmingham’s Coca-Cola United.

Coca-Cola United said it will be adding close to 100 jobs in the newly acquired markets.

Claude Nielsen

Claude Nielsen

“When you think about the transformation of this company over the last three and a half years and bringing together, arguably, some of the best Coca-Cola franchises in the world, it’s all built on a foundation of strong customer partnerships and community engagement,” Coca-Cola United CEO Claude Nielsen said. “You couple exceptional people with exceptional brands, and then add the right operating model that really puts the focus at the local level, and we think you have an ideal recipe for success.”

The acquisitions come less than a year after Coca-Cola United made a deal with the Coca-Cola Company to purchase eight of the soft drink giant’s territories in Georgia, Florida, Louisiana, and Mississippi.

Six of those eight refranchised territories expand Coca-Cola United’s west region operations, headquartered in Baton Rouge. They include Alexandria and Monroe in Louisiana, Natchez in Mississippi, and – as of today – New Iberia and greater New Orleans.

John Sherman, Coca-Cola United chief commercial officer, said the latest deal boosts the size of the Birmingham-based company significantly.

“The New Orleans facility will end up being twice as big as any facility we have in our company, so it is a big, big operation,” Sherman said. “It also happens to be an extremely good Coca-Cola franchise that’s been well managed for many, many years. So we are acquiring a very rich Coca-Cola franchise.”

The Coca-Cola facility in New Orleans is now part of Birmingham's Coca-Cola United. (contributed)

The Coca-Cola facility in New Orleans is now part of Birmingham’s Coca-Cola United. (contributed)

Sherman said the facility handles 23 million cases annually. He said the transition will be helped by the management team that comes with the company.

“It’s very exciting for us because in addition to the operations, we’re acquiring great leadership with this transaction,” he said. “We’re very excited about the team that is going to be running these operations for us.”

The excitement was shared in Louisiana.

“It is with great enthusiasm that we welcome the Greater New Orleans and New Iberia Coca-Cola territories into the West Region of our Coca-Cola United family,” said Paul Favaron, Coca-Cola United’s west region vice president. “Coca-Cola has a long history in South Louisiana and is an important part of the community.

Paul Favaron

Paul Favaron

“As I have become familiar with our new United family members, I am impressed with their capabilities and dedication to their local customers and communities,” Favaron added. “To support their work and our locally focused business model, we will be adding 92 new local jobs between the greater New Orleans and New Iberia markets. Collectively, we have 850 Coca-Cola associates serving these areas.  We are very optimistic about the future of Coca-Cola United in the west region.”

The two new territories began operations as divisions of Coca-Cola United March 31. Terms of the acquisition were not disclosed.

“Since 1902, Coca-Cola has had a rich history of community engagement and customer service throughout South Louisiana and the Northshore,” said Rocky Weigand, director of the Crescent City Division of Coca-Cola United. He said 82 of the new jobs will be in the New Orleans area.

Rocky Weigand

Rocky Weigand

“We are proud that Coca-Cola has deep roots in our community, having served Jefferson Parish and the surrounding metropolitan area since 1902,” said Jefferson Parish President Mike Yenni. “We are very excited to welcome Coca-Cola United to our community and look forward to future cooperative endeavors.

“In addition to the creation of 82 local jobs, their planned capital investments show their confidence in the growth potential of doing business in Jefferson Parish and southeast Louisiana,” Yenni added. “The additional investment in jobs and capital speaks well for Jefferson Parish as a place to invest, to work and to raise a family.”

The additional new jobs will be created in New Iberia. Coca-Cola United has also said it plans to make a substantial investment in modernizing and expanding in New Orleans and New Iberia.

“It’s an honor to have this opportunity to welcome New Iberia Coca-Cola into the Coca-Cola United family,” said Lee Tatford, sales center manager for New Iberia Coca-Cola. “To continue meeting our high customer service standards and support of the community, we have created 10 new local jobs; bringing our total to 66 associates serving this area. I am looking forward to the future as we continue to strengthen our relationships with our consumers, customers and communities throughout Acadiana.”

The New Iberia Coca-Cola facility is now part of Birmingham's Coca-Cola United. (contributed)

The New Iberia Coca-Cola facility is now part of Birmingham’s Coca-Cola United. (contributed)

New Iberia Mayor Hilda Curry said the acquisition is good for her city.

“I am elated that Coca-Cola Bottling Company United has committed to stay in New Iberia and add at least 10 new jobs to the current operations in our city,” Curry said. “I appreciate their confidence in the growth potential in New Iberia. Coca-Cola has always been a great partner with the city and I look forward to future partnerships and cooperative endeavors.”

Coca-Cola United was founded in 1902 and is the largest privately held Coca-Cola bottler with more than 5,700 employees. The company has 35 territories across seven Southeastern states engaged principally in producing, marketing and distributing Coca-Cola family of products under exclusive franchise agreements with The Coca-Cola Company and other soft drink manufacturers.

The company recently completed its acquisition of the Chattanooga territory, home to the oldest Coca-Cola bottler in the world, and has announced plans to acquire the territory in Georgia that includes the Atlanta metro area, home to the global headquarters of Coke.

Nielsen said Coca-Cola United’s growth has already added jobs in Birmingham to support the company’s expansion, and the company is exploring plans to build a new facility in Birmingham.

Sherman said Coca-Cola United’s headquarters will remain in Birmingham as it continues to grow.

“We have been staffing up over the last year preparing for this acquisition,” Sherman said. “We acquired Shreveport, Alexandria, Monroe, Natchez, Tallahassee and Valdosta in October, but we were also preparing for New Orleans at the same time. We’ve made significant increases in employment here in Birmingham to be able to support that.”

Coca-Cola United’s Claude Nielsen and John Sherman on the Birmingham company’s growth from Alabama NewsCenter on Vimeo.