This case involves a bottled water distributor that held a contract with a major soft drink company, an exclusive bottling agreement that had lasted for several decades. The contract required the soft drink company to prevent transshipment of its product into the bottler’s regional territory, and to compensate the bottler when transshipment did occur. The distributor has noted a number of failings on the part of the soft drink company in regards to their failure to redress transshipment issues, and initiated litigation against the soft drink manufacturer.
Question(s) For Expert Witness
- 1. Have you dealt with transshipment issues in the course of your career?
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2. What preventative measures or remedies do soft drink companies typically employ to address transshipment?
Expert Witness Response E-033822
I dealt with transshipment during my 17 year career with one of the nation’s largest soft drink companies. As Chief Procurement Officer for this company, I routinely supplied information for the “Transhipment Committee” which was made up of the 4 Independent Bottlers in the United States as well as the soft drink company. I am very familiar with the Committee Process including the use of an outside company to verify the transshipments, the method of review by the Committee, and the charge for each case shipped by the bottler who was found in violation of the Geographic Franchise Territory granted to the bottler by the soft drink company. I am also familiar with the transshipment process that the soft drink firm in question uses in North America for its bottlers.
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