Pepsi Bottling to buy Cadbury Schweppes rights from Nor-Cal
January 09, 2007
by Eric Schroeder
WEST SACRAMENTO, CALIF. — The Pepsi Bottling Group has entered an agreement to acquire the Cadbury Schweppes soft drink distribution and bottling rights of Nor-Cal Beverage Company, Inc. The transaction is expected to close in early March.
Nor-Cal, which is a major independent contract packer of chilled juices and hot fill beverages, said the sale of the franchise and distribution rights to Dr Pepper, Squirt and Hawaiian Punch brands will allow the company to focus on contract packing for other beverage companies.
"It was a difficult decision to sell this segment of our business," said Donald Deary, president of Nor-Cal. "The company has been bottling and distributing soft drinks for over 65 years. However, challenging business conditions and the ability to grow through contract packing opportunities made this move compelling.
"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 Co. and Arizona Iced Tea.