Coke says bottlers drop delivery suits

Coke says bottlers drop delivery suits

	Published : Mon, 12 Feb 2007 16:50 By : Agencies Print this Story

ATLANTA (AP) - Several bottlers have agreed to drop their suit against The Coca-Cola Co. over its plan to distribute Powerade to Wal-Mart stores directly through the retailer's warehouses.

Coca-Cola, the world's largest beverage maker, said Monday it will also work with the bottlers 'to develop and test new customer service and distribution systems to supplement their powerful direct store delivery.'

Atlanta-based Coca-Cola said that it hoped that all U.S. bottlers will participate.

Bottlers participating in the initiative agreed to drop lawsuits now pending in U.S. District Court in Atlanta, and Circuit Court of Jefferson County in Birmingham, Ala., Coca-Cola said in a statement.

A Coca-Cola spokesman did not immediately return a call seeking further comment.

Last year, several bottlers that represent roughly 10 percent of Coca-Cola's U.S. volume sued to try to block a new delivery system that its largest bottler, Coca-Cola Enterprises Inc., wanted to test for the Powerade sports drink.

A major Coca-Cola customer, Bentonville, Ark.-based Wal-Mart Stores Inc., approached the company and its bottlers last summer, saying it wanted to increase availability of Powerade in its stores and help the brand grow faster by delivering the product to its stores through its own warehouses rather than through the bottler system.

The test of the proposal was only being conducted in CCE's territory, but some other bottlers objected, Coke said.

'Our bottling system is our heritage, and it will be the foundation for our future growth. The partnership with our bottlers is what makes the Coca- Cola System powerful and unique, and we will work diligently to ensure that we move forward and succeed together,' said Sandy Douglas, president, Coca-Cola North America. 'One of the historic strengths of our system has been its ability to change and adapt as our consumers, customers and competitors have changed.'

Under the agreement, the company will join U.S. Coca-Cola Bottlers in testing various new route to market service systems to bring Company products to customers who require special services.

Coca-Cola shares rose 31 cents to $48.07 in morning trading on the New York Stock Exchange.