Sources inform “Globes” that Central Bottling Co. (Coca-Cola Israel) is building a refrigerated distribution network.
Coca-Cola Israel is about to establish distribution center for frozen beverages at the Prigat plant in Kibbutz Givat Haim, and terminate its relationship with Tnuva, which has distributed Prigat's frozen juice products until now. The sources added that Coca-Cola Israel has already bought 40 refrigeration trucks and plans to enter the frozen beverages market. This means that Coca-Cola Israel will enter the dairy beverages market in the future, a venture it once tried to set up in partnership with dairy companies. Coca-Cola Israel will compete against Strauss and Tnuva in the dairy market.
Coca-Cola Company's (NYSE:KO) global strategy is to enter every beverage market, by exploiting its advantage in the cold beverage market for kiosks, where it has an advantage over dairy companies.
Under its total beverage strategy, Coca-Cola Israel will be active in every beverage market, included wine.
Coca-Cola Israel currently owns 32% of Prigat; 50% of mineral water company Neviot; and 80% of Israel Beer Breweries (Carlsberg Israel), in partnership with Carlsberg.
Coca-Cola Israel stated in response, "Prigat has decided to transfer the distribution of its frozen and chilled products to the Central Bottling Company's distribution unit. We're preparing accordingly, including warehouses and trucks. We stress that the distribution network will only serve Prigat's chilled and frozen products. Coca-Cola Israel has no intention of competing against Strauss and Tnuva."
Published by Globes [online] - www.globes.co.il - on October 28, 2003