| FOR IMMEDIATE RELEASE | 19 February 2016 |
Swire Pacific Limited (HKSE: 00019/00087) ("Swire Pacific") announced today that Swire Coca-Cola, USA, a subsidiary within Swire Pacific's Beverages Division, has signed a Letter of Intent ("LOI") with The Coca-Cola Company which contemplates Swire Coca-Cola, USA being granted additional territory rights in the Pacific Northwest of the United States, subject to entry into and closing of definitive legal agreements. The territories are in the states of Washington, Oregon and Idaho and include the cities of Seattle and Spokane in Washington and the city of Portland in Oregon. The LOI also contemplates the acquisition of production facilities near Seattle and Portland and distribution facilities. Financial terms were not disclosed.
Swire Pacific will, on entry into definitive legal agreements, announce them in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Today's LOI follows the territory grants previously agreed, under which Swire Coca-Cola, USA is to receive additional territories in Colorado (including Denver and Colorado Springs) and Arizona (including Phoenix and Tucson) under The Coca-Cola Company's 21st Century Beverage Partnership Model. After the grant of the territories in the Pacific Northwest (and of the additional territories in Colorado and Arizona), Swire Coca-Cola, USA will serve a population in the United States of approximately 26.6 million.
"We are delighted to sign this Letter of Intent with The Coca-Cola Company," said Jack Pelo, President and CEO, Swire Coca-Cola, USA. "This latest grant of additional territory rights, following on from the agreements to expand our territories in Colorado and Arizona, underscores the important role Swire is playing in The Coca-Cola Company's refranchising initiatives in North America."
"Swire is a great partner, and we are excited at this proposed further expansion of their U.S. territories in the Coca-Cola system," said J. Alexander "Sandy" Douglas Jr., President, Coca-Cola North America. "We're also pleased that the overall refranchising process is going very well in North America."
About Swire Coca-Cola, USA
Swire Coca-Cola, USA, a subsidiary of Swire Pacific Limited (HKSE: 00019/00087) (www.swirepacific.com) within its Beverages Division, has two production facilities located in Salt Lake City, Utah, and in Fruitland, Idaho, and 30 sales centres serving portions of 13 western states. Currently, its territory extends through parts of Washington in the north to Arizona in the south and from California in the west to Nebraska in the east.
About Swire Beverages
Swire Beverages is a division of Swire Pacific Limited. The division has the exclusive right to manufacture, market and distribute products of The Coca-Cola Company in Hong Kong, Taiwan, seven provinces in Mainland China and an extensive area of the Western U.S. The relationship with Coca-Cola began in 1965, with the acquisition by Swire of the majority shareholding in the Hong Kong bottling company. Swire Beverages manufactures 57 beverage brands and distributes them to a population of over 450 million people.
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