Coke Bottlers Drop Powerade Suit

Direct shipping at issue.

An undisclosed number of Coca Cola bottlers have dropped a lawsuit challenging the soft drink giant’s plans to ship Powerade directly to Wal-Mart warehouses.

A group of 60 bottlers last year argued that the direct shipping plan -- which bypassed the traditional direct store delivery model -- violated their contracts. They claimed Coca-Cola Co. might strike similar deals for other beverages.

The bottlers also sued Coca-Cola Enterprises and Coca-Cola Bottling Company.

Under the agreement, Coke will join the bottlers in “testing various route to market service systems to bring company products to customers who require special services,” according to a Coke release.

The lawsuit was closely followed by beer distributors because it touched on contractual provisions regarding warehouse delivery and exclusive territories. While there are substantial differences between the two industries, it was believed legal precedents set in the court cases could affect the beer system later.

Coke’s press release can be seen here.

An Associated Press article covering the story can be seen here.