Arca Continental Based in Mexico to be Coca-Cola’s Bottling Partner in the U.S

Coca-Cola Co. is joining hands with a Mexican company, Arca Continental, based in Monterrey to manage bottling of its beverages for some parts of the United States. The beverage giant is increasing its dependence on franchise operators which will make and distribute drinks for the company. Elaborate terms of the deal were however not disclosed.

Arca Continental SAB is the second biggest bottler of Coca Cola in Latin America. It will now oversee parts of Texas and some parts of Oklahoma, New Mexico and Arkansas.

Coca-Cola Bottling Co. United, which is another bottler for the company will also become partner in a U.S. venture where Arca Continental Beverages will hold a majority stake.

Muhtar Kent , the CEO of Coca-Cola Chief has been selling bottling operations in the United States that are asset heavy as he makes an effort to focus on more profitable business like selling concentrates and syrups to the other companies.

The refranchising initiative is estimated to be completed by 2017 end according to the beverage company based in Atlanta.

Sandy Douglas, president of Coca-Cola North America, said "Arca Continental will be a tremendous partner with United in serving a major region of the United States. The companies will benefit from having contiguous borders for their territories."