Coca-Cola: Still Like Local Approach Of Bottling System

Coca-Cola Co (KO) emphasized that its cooperation with its bottlers has been growing and said that it continues to like the local approach offered by its bottling system.

Coke's comments come a day after PepsiCo (PEP) announced a bid for two bottlers, raising speculation that Coke might follow suit and could consider a bid for its largest bottler Coca-Cola Enterprises (CCE). Coke shares were recently down 1.8% to 43.54 and Coca-Cola Enterprises shares dropped 2% to 14.95. The bottlers shares had risen sharply early Monday after the Pepsi news.

"The franchise model in its broadest sense is still the best way to win in the marketplace," said Chief Executive Muhtar Kent on a conference call, referring to the bottling system. "It gives us the focus we need, the global breadth and scale, and the local leadership."

Coke said it is confident about meeting its long-term targets for the year, although second quarter profits may be below targets.

The company is considering a variety of use for cash and will be discussing these with its board.

-Anjali Cordeiro; Dow Jones Newswires; 201-938-2408; [e-mail]