Birmingham-based soft drink distributor Buffalo Rock is suing PepsiCo over several distribution issues. The suit, filed Tuesday in Jefferson County Circuit Court, names the soft drink company, as well as several other defendants, over “transhipping” - the encroachment of soft drink bottling companies into another company’s exclusive territory. Buffalo Rock is a fourth-generation family-owned business in operation since 1901. In the lawsuit, Buffalo Rock states it is the exclusive bottler and distributor of Pepsi products, chiefly Pepsi and Mountain Dew, in portions of Alabama, West Georgia, and Florida. Over the years, the company says, PepsiCo has allowed other bottlers, and a subsidiary named Pepsi Beverages Co, that makes up approximately 80 percent of the bottling operations in the United States, to distribute into its territory. The suit claims PepsiCo has done little to stop the practice, and has allowed other transhippers into Buffalo Rock’s zone. The suit seeks more than $1 million in relief. In a statement, the company said it filed the suit against PepsiCo “for violating our franchise agreements.” “For years, we have tried to resolve this issue by working proactively with PepsiCo to address our ongoing concerns,” the company stated. "Unfortunately, after years of discussions with PepsiCo, the problem has not been resolved, and we feel we have no choice but to file suit to protect our Company and our employees. “It is our responsibility to protect our company, our employees and their families, and the integrity of our franchise agreements. We hope and expect to resolve this issue favorably but in a way that allows us to continue our longstanding partnership with PepsiCo," the statement said. Attempts to contact PepsiCo for a statement were not successful. According to the lawsuit, Buffalo Rock currently employs over 2,100 employees, and operates 14 facilities in Alabama, Florida, and West Georgia.
Alabama-based soft drink company Buffalo Rock is suing PepsiCo over a "transhipping" encroachment. The lawsuit filed in federal court on Tuesday alleges that the two companies have been using their market power to force other beverage makers out of business. In a suit seeking more than $1m, it is stated that other bottlers—particularly the subsidiary Pepsi Beverages which accounts for 80% of the parent company's distribution in the US—have been allowed to violate the franchise agreement for years, while PepsiCo has made no attempt to prevent it.