The Atlanta-based multinational company signed the¬†new license agreement for an initial period of ten years, although it was just extended¬†recently. The agreement was initialed by the merger of the bottling and the¬†creation of Coca Cola Iberian Partners, following the integration of the seven¬†Spanish companies (Cobega, Colebega, Casbega, Rendelsur, Begano, Norbega, and¬†Asturbega).
Thus, the new concession contract for 20 years has begun and¬†Coca-Cola will be the only bottler rewards with a double bonding period. This¬†is something that is usual before integration and, by doing the merge and¬†restructuring the deal, it has opened up new avenues for all parties involved.
The concession contract governs the relationship between the¬†single Coca-Cola bottler and Spain, which takes care of defining business¬†strategy, marketing, and brand and trade policies.
Waiting for the¬†Judgment
Specifically, Coca-Cola Iberian Partners is waiting to hear¬†the judgment of the High Court on the legality of Redundancy Employment (ERE)¬†affecting 1,190 jobs, which led to the closure of four plants in Spain (Fuenlabrada,¬†Asturias, Palma Mallorca and Alicante).
The only bottler which is based in Madrid converged after¬†integration into the country’s largest food industry with a net turnover of¬†over 3 billion euros.
Coca-Cola in Spain and Portugal sold 24 brands and 69¬†products, and reached over 400,000 customers. In the field of innovation, the¬†Iberian division is the second in the world rankings for a variety of¬†beverages, just behind Japan.