Mexican Coca-Cola bottler Arca Continental has decided to construct a new production and distribution facility in Houston, Texas, through its subsidiary Coca-Cola Southwest Beverages (CCSWB).
The Monterrey-based company became the first Latin American bottler to operate in the US Coca-Cola system a little over a year ago. The company said that it will invest $250m in a one million ft² facility, which will be the first Coca-Cola production plant built in the US in a decade.
Arca Continental board chairman Manuel Barragan Morales said: “This significant investment confirms Arca Continental’s commitment for the sustainable value-creation in all the markets we serve and is a reflection of the confidence in our company’s ability to continue perfecting its performance, serving its customers with excellence and anticipating the needs of consumers.”
Scheduled to begin operations in early 2020, the new plant will have the latest technology, five new production lines, in-line blow moulding, distribution facilities, and warehouse and sales, which will enable CCSWB to serve the southeast Texas market.
The project is expected to contribute $30m in cost savings and operating efficiencies, as part of the $90m synergy programme.
Arca Continental CEO Francisco Garza Egloff said: “The productivity, efficiency and sustainability that this new plant will bring to beverage production in the US Coca-Cola system confirms our company’s determination to improve its competitiveness, enhance service at the point of sale and expand our portfolio for the communities we serve in Texas, Oklahoma, some parts of Arkansas and New Mexico, always in a profitable and sustainable way.”
CCSWB CEO Mark Schortman said that during the construction of the new facility in Houston, the company will continue offering the highest-quality products and the best customer service as it has done until now.
Through this initiative, Arca Continental expects to make rapid progress in the integration of best practices and the capturing of synergies in the CCSWB territories, updating the technology and market service platforms, and standardising commercial models, focused on continuing to strengthen all areas for customers and consumers.