Coke, Bottlers Try to Reach Settlement in Powerade Case

Will report back to court in December.

Coca-Cola Co. and a group of more than 55 bottlers are trying to settle the lawsuit the bottlers filed against Coke and No. 1 bottler Coca Cola Enterprises over their plan to ship Powerade directly to Wal-Mart Stores Inc. warehouses. A reason for the move: The selection of Sandy Douglas as head of Coke's North American business could “improve chances of a settlement,” the Atlanta Journal-Constitution reported. The bottlers want to “seek a business solution” the story quoted a bottler attorney as saying.

Beer Business Daily suggests that such an arrangement likely would be a "payment and a per-case “encroachment fee” paid by Coke to the bypassed bottlers."

The story noted that since filing the suit in February, bottlers have discovered CCE planned to ship Minute Maid directly to Valero Energy and Dasani bottled water to Costco. This breaks from the traditional direct to store delivery model.

The case has been followed closely by beer distributors since it touches on issues of territorial exclusivity and the growing influence of big box retailers.