Massive bottling facility planned
Coke franchisee will consolidate its local operations near I-45 North
Coca-Cola Co. plans to consolidate its local operations into a new 1 million-square-foot manufacturing and distribution facility north of Houston.
Dallas-based franchisee CocaCola Southwest Beverages announced Wednesday it would develop the massive facility at Pinto Business Park, a Hines-developed industrial park at Beltway 8 and Interstate 45. The $250 million project is expected to break ground in the third quarter and be completed in the first quarter of 2020.
“Coca-Cola has a long, rich history in Houston,” Mark Schortman, president of CocaCola Southwest Beverages, said in a statement. “As a local bottler, we’ve been serving customers, consumers and communities in Texas for more than 100 years. We are committed to supporting future growth in the region, one of the fastest-growing markets in the U.S.”
The proposed bottling plant
would be Coca-Cola’s first new plant built in the U.S. in a decade. The state-of-the-art plant will have five production lines as well as space for distribution, warehouse and sales for CocaCola soft drinks, juices and bottled water. A company spokesman did not have figures for the plant’s estimated production capacity but said it will primarily serve the Houston area.
After moving into the plant, Coca-Cola Southwest Beverages plans to close its two existing plants, one off Bissonnet and the other in the Gulfgate area, as well as four local warehouse and distribution facilities in Brittmoore, Channelview, Glenbrook and Conroe. The consolidation is expected to save the company $30 million in operating expenses over three years.
Coca-Cola Southwest Beverages is a subsidiary of Monterrey, Mexico-based Arca Continental, the second-largest Latin American bottler, known for producing Topo Chico water and Coca-Cola products in Mexico. Established last year, the Coca-Cola franchise operates 10 production plants and 40 distribution facilities in Texas and parts of New Mexico, Oklahoma and Arkansas, serving 31 million customers. The company has 8,900 employees, including 850 workers in Houston.
The company does not anticipate any layoffs but plans to reorganize its operations after the consolidation, a spokesman said. The plant’s 146-acre site in Pinto Business Park has room for the company to grow alongside Houston’s surging population.
The spokesman said it was too soon to comment on plans for its Bissonnet and Gulfgate production plants, which will remain in operation while the new plant is under construction.
Rusty Tamlyn, the senior managing director with commercial real estate firm HFF, said he expects the Bissonnet plant will be sold and redeveloped, likely into an apartment complex or a senior living facility.
The site is in the middle of the block, which is less desirable than a corner parcel. However, it’s in the city of Houston, which doesn’t have zoning, unlike nearby West University Place, which Tamlyn said makes it attractive for developers.
“The site is very desirable since it’s right there near West U,” Tamlyn said. “It’s a prime piece of real estate.”