Counting Beans

Coca Cola’s production is divided among its cold fill and hot fill production. Cold Fill production is owned by local bottlers. Cold fill production is used for carbonated soft drinks such as Diet Coke, Coca-Cola Class, and Sprite as well as bottled water such as Dasani. In this instance, Coca Cola has pursued a strategy of backward vertical integration, by divesting any of its company owned cold fill production to local bottlers. Hot fill production is owed by Coca-Cola. Hot fill is primarily used for non-carbonated beverages such as Powerade and Minute Maid juices. For hot fill production, Coca Cola has a vertical integration strategy since they own production and distribution.