Alabama-based soft drink company Buffalo Rock is suing PepsiCo over a "transhipping" encroachment. As the exclusive bottler and distributor of Pepsi products, such as Pepsi and Mountain Dew, in areas of Alabama, West Georgia and Florida, Buffalo Rock claims that PepsiCo has allowed other distributors to operate within its territory. In a suit seeking more than $1 million, 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.
Alabama-based soft drink company Buffalo Rock is suing PepsiCo over a "transhipping" encroachment. As the exclusive bottler and distributor of Pepsi products, such as Pepsi and Mountain Dew, in areas of Alabama, West Georgia and Florida, Buffalo Rock claims that PepsiCo has allowed other distributors to operate within its territory. 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.