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