Filed by Coca-Cola
Enterprises Inc. pursuant to
Rule 425 of the
Securities Act of 1933 and
deemed filed pursuant
to Rule 14a-12 of the
Securities Exchange
Act of 1934
Subject Company:
Coca-Cola Enterprises Inc.
Commission File
No.: 001-09300
Steve
Cahillane
Employee
Email (US Users, CA Users, bcc Fionnuala Tennyson and Shanna Wendt) 7:30 a.m.
ET
February
25, 2010
Subject:
Strategically Advancing Our Business in North America
Following
this morning’s announcement, I wanted to provide some additional perspective on
the strategic advancement of our North American business. I am
confident that this is the beginning of a new era of growth and profitability
for North America and that we will be better positioned to market and distribute
the world’s greatest brands. Integrating our business with the majority of
Coca-Cola North America will improve our capability, speed and flexibility to
build strong brands and more efficiently and effectively serve our
customers.
Following
the close of the deal later this year, the newly formed Coca-Cola Refreshments
(CCR) will integrate manufacturing, supply chain, logistics, and sales and
customer service operations into one business. The majority of The
Coca-Cola Company’s North American businesses including Foodservice, The Minute
Maid Company and Supply Chain operations, including hot-fill, will be combined
into CCR.
In many
ways, it is our work that has paved the way for this next-generation business
model. We knew that to compete effectively in today’s marketplace we
had to evolve the business model the Coca-Cola bottling system had been using
for more than 100 years in North America. With fewer retailers
controlling more of the market and consumers demanding more choice, our
capabilities had to become more customer-centric and make us more nimble and
flexible. We have been working diligently to address the fundamental structural
challenges that were preventing us from producing, selling and distributing our
products faster and more profitably. We have moved meaningfully, and
we have moved swiftly to lead change.
We
restructured NABU to create a more simplified, streamlined
organization. We implemented a price increase in the U.S. to protect
our margins as cost of goods soared. We launched Coca-Cola Supply to help create
a world-class supply chain. We implemented a new approach to our price/package
architecture to revitalize the sparkling category, and we took a critical look
at our SKU rationalization process. We piloted new concepts like Outlet Service
Solutions and Fountain Harmony to provide competitive delivery methods and
leverage our system strengths. And, we launched initiatives like Right Execution
Daily and
Ownership
Cost Management. As a result, we are driving efficiency and
effectiveness like never before at CCE, and we are creating a more powerful
alignment with The Coca-Cola Company. This is why the timing is right to begin
the next major development in our transformation. It is the right decision, at
the right time, and I assure you that it will be done in the right
way.
While the
transaction is still subject to regulatory and shareowner approval, The
Coca-Cola Company will announce a transition team shortly who will be
responsible for the integration process. You have my personal
commitment that we will approach this thoughtfully, that we will be open and
transparent with you, and that we will communicate regularly and
frequently.
I will
stay closely connected with you in the coming months as we work through this
transition together. Now, more than ever, I need your commitment that
you will stay focused to deliver 2010. This is our
time. We will show how our work is creating the foundation for an
integrated North American Coca-Cola system focused on superior customer service,
faster routes to market and innovation. Being the best beverage sales
and customer service company is our number one priority.
Today’s
announcement is recognition that we are the best Coca-Cola bottler, and I truly
believe our best days are yet to come.
Thank
you.
Steve
Cahillane
President,
North America
Coca-Cola
Enterprises
IMPORTANT
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This
communication does not constitute an offer to sell or the solicitation of an
offer to buy any securities or a solicitation of any vote or
approval. In connection with the proposed transaction and required
shareowner approval, the Company will file relevant materials with the
Securities and Exchange Commission (the "SEC"), including a proxy
statement/prospectus contained in a registration statement on Form S-4, which
will be mailed to the shareowners of the Company after the registration
statement is declared effective. The registration statement has not yet become
effective.
SHAREOWNERS
OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC,
INCLUDING THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE, BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Shareowners
may obtain a free copy of the proxy statement/prospectus, when it becomes
available, and other documents filed by the Company at the SEC's web site at
www.sec.gov. Copies of the documents filed with the SEC by the Company will be
available free of charge on the Company's internet website at www.cokecce.com
under the tab
"Investor
Relations" or by contacting the Investor Relations Department of Coca-Cola
Enterprises at 770-989-3246.
PARTICIPANTS
IN THE SOLICITATION
The
Company and its directors, executive officers and certain other members of its
management and employees may be deemed to be participants in the solicitation of
proxies from its shareowners in connection with the proposed transaction.
Information regarding the interests of such directors and executive officers was
included in the Company's Proxy Statement for its 2009 Annual Meeting of
Shareowners filed with the SEC March 3, 2009 and a Form 8-K filed on December
18, 2009 and information concerning the participants in the solicitation will be
included in the proxy statement/prospectus relating to the proposed transaction
when it becomes available. Each of these documents is, or will be, available
free of charge at the SEC's web site at www.sec.gov and from the Company on its
web site or by contacting the Shareowner Relations Department at the telephone
numbers above.