The Rosemont company that distributes Coca-Cola products throughout the Midwest is expanding its Coke bottling territory.
Reyes Holdings, the parent company of Great Lakes Coca-Cola Distribution, has signed a letter of intent with the Coca-Cola Co. to distribute its bottled products, including Fanta, Dasani and other brands, in California and Nevada. The terms of the deal were not disclosed.
The negotiations are still in their early stages, said Scott Leith, spokesman for Coca-Cola North America. The companies must next reach a definitive agreement before closing.
Reyes, which has holding companies that supply beer and distribute to McDonald's, first signed a letter of intent with Coca-Cola in early 2014 to become the company's bottling and distribution partner in the Midwest. That deal closed in mid-2015.
Reyes said in an emailed statement that it would work with Coca-Cola to "close this transaction as expeditiously as possible."
The new deal would expand Reyes' Coca-Cola distribution territory to parts of eight states and includes Los Angeles, San Francisco and Las Vegas.
The agreement is part of Atlanta-based Coca-Cola's plan to refranchise all of its U.S. bottling territories by the end of 2017. So far, about 80 percent of that plan is complete, Leith said.
Reyes was the 12th-largest privately held company in the U.S. last year, according to Forbes magazine. The company, with operations around the world, delivers more than 950 million cases of beverage and food products each year.