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Overview
In the mid-1980s, Coca-Cola and Pepsi re-entered the bottling business, which had long been dominated by family-operated independents. Coca-Cola began repurchasing interests in bottlers worldwide with a view toward providing those bottlers with financial and managerial strength, improving operating efficiencies, and promoting expansion into emerging international markets.

Finance
Initially, the decision has an element of risk. The acquisitions costs of the independent bottlers were high. Between 1980 and 1985, Coca-Cola's case increased their debt levels from 10% to 23% by $1 billion. This debt increase was reduced to 8% in 1986 via the floatation of 51% of the new integrated bottling business. Such a decision to sell control of the company assisted Coca-Cola avoiding potential antitrust problems.

Operational Benefits
Through the reduction of the number of bottlers, concentrate producers reduced their negotiation time and costs. Previously, negotiations would take......

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Approximate Word Count: 468
Approximate Pages: 2 (250 words per double-spaced page)

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