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North Houston Business Park Lands First U.S. Coca-Cola Production Facility in a Decade

Coca-Cola Southwest Beverages to Construct 1 Million-SF Facility at Hines' Pinto Business Park
May 31, 2018
Coca-Cola Southwest Beverages, a franchisee owned by Monterrey-based Arca Continental, will invest $250 million to construct a 1 million-square-foot production facility at Hines’ Pinto Business Park at Beltway 8 and Interstate 45. The move will consolidate the company’s two Houston-area manufacturing plants and four warehouses under one roof.

The future plant will be the first Coca-Cola production facility constructed in the U.S. in more than a decade. The project is expected to break ground in Q3 2018 and deliver by Q1 2020. Upon completion, Coca-Cola Southwest Beverages will close its two existing facilities at 2800 Bissonnet St. and 2819 Berkley St.

The plant will house five production lines as well as distribution, warehouse and sales facilities. Coca-Cola Southwest Beverages expects to save roughly $30 million in costs and operating efficiency, and an additional $90 million in synergies.

"The productivity, efficiency and sustainability in the production of beverages that this new plant will contribute to the Coca-Cola System in the United States confirms the determination of our company to improve competitiveness, improve attention to the point of sale and expand the variety of our portfolio for communities mainly in Texas and Oklahoma, as well as some parts of Arkansas and New Mexico, always in a profitable and sustainable way," Arca Continental CEO Francisco Garza Egloff said in a statement.

Coca-Cola Southwest Beverages’ real estate decision comes in the wake of Coca-Cola’s recent refranchising effort, putting more planning power in the hands of its franchisees. Last October, The Coca-Cola Company began returning ownership of bottling facilities to local partners, like Coca-Cola Southwest Beverages. The company and its U.S. bottling partners worked together to expand, close or move 60 facilities. Coca-Cola franchisees now operate 350 distribution centers and more than 50 production facilities, employing 55,000 workers responsible for more than 1.3 billion physical cases of volume.

Today, Coca-Cola works with 68 independent bottlers across the United States. Worldwide, 250 Coca-Cola bottling partners operate roughly 900 plants.

Kyle Hagerty, Houston Reporter  CoStar Group   
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