Nor-Cal Sells Soft Drink Franchises to Pepsi Bottling Group
Nor-Cal will increase its focus on contract packing for other beverage companies. Pepsi Bottling Group will purchase Nor-Cal's franchise and distribution rights to Dr Pepper, Squirt, and Hawaiian Punch brands.
09/01/07 Nor-Cal Beverage Company, Inc. has announced that its Cadbury Schweppes soft drink distribution and bottling rights are being sold to Pepsi Bottling Group. The transaction is expected to close in early March. Nor-Cal will increase its focus on contract packing for other beverage companies.
Donald Deary, President, said, "It was a difficult decision to sell this segment of our business. The Company has been bottling and distributing soft drinks for over sixty-five years. However, challenging business conditions and the ability to grow through contract packing opportunities made this move compelling." Pepsi Bottling Group will purchase Nor-Cal's franchise and distribution rights to Dr Pepper, Squirt, and Hawaiian Punch brands.
Nor-Cal will use a portion of the transaction proceeds to expand the Company's contract packing capabilities. Mr. Deary added, "Over the next year we intend to build at least one hot fill packaging line in our West Sacramento bottling facility. We want to bring in new customers and expand relationships with existing ones." Nor-Cal's current contract pack customers include Coca- Cola North America, Hansen's Beverage Company, and Arizona Iced Tea.
Nor-Cal is a major independent contract packer of chilled juices and hot fill beverages with production facilities in West Sacramento and Anaheim. The Company is also an Anheuser-Busch distributor, provides commercial food equipment maintenance services, has a full line vending operation, and owns and produces Go-Girl Energy Drink, which is currently distributed throughout California, Nevada and Hawaii.
