Ozarks Coca-Cola/Dr Pepper Bottling Co.: Classic Success
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By Erica Burke   
Tuesday, 24 June 2008
smc Ozarks Coca-Cola was founded in 1905 � just six years after Coca-Cola first began selling its bottling and distribution rights. Shown here are co-owners Virginia Heer and Edwin C. Rice.
Ozarks Coca-Cola was founded in 1905 � just six years after Coca-Cola first began selling its bottling and distribution rights. Shown here are co-owners Virginia Heer and Edwin C. Rice.
Premier Business Partners:

Dr Pepper
ACR Nally

The Coca-Cola Co. owns some of the world’s most recognizable soft drinks, and trusts its extensive network of bottlers to deliver the same taste and refreshment to consumers worldwide. Those bottlers vary from large public entities to small, family run businesses. Ozarks Coca-Cola/Dr Pepper Bottling Co. may be a smaller operation compared to some of its peers, but its position in the industry gives it a clear advantage.

Ozarks Coca-Cola was founded in 1905 – only six years after Coca-Cola first began selling its bottling and distribution rights. At the time, Ozarks Coca-Cola was known as the Electric Bottling Company and bottled ginger ale, root beer and flavored sodas, such as orange, grape, lemon, peach and strawberry. Coca-Cola products represented only a small percentage of its sales in the early years.

In 1920, Edwin C. Rice Sr. convinced his family to invest in the business and move from Kentucky to Springfield, Mo. Rice Sr., was joined in the business by his son-in-law, Edward E. Heer, and his son Edwin “Cookie” Rice.  The Rice and Heer families still retain joint ownership of the operation. “What’s unique about Ozarks Coca-Cola is how the business remains a family company,” President John Schaefer says. “The families are still very much involved in the company, and are deeply entrenched in the community, as well.”

Product Explosion
The products distributed by Ozarks Coca-Cola are exploding in number and variety, from new energy drinks and flavored water to variations of its namesake beverage. Ozarks Coca-Cola distributes approximately 400 skus, and Schaefer expects this growth to continue. “It’s going nowhere but up,” he says. “In the next five years, predictions are that we’ll be at 1,000 skus.”

With this boom in items comes more responsibility and challenges for all Coca-Cola bottlers. “Ozarks Coca-Cola has adjusted its fleet to include more tractor trailers to accommodate the diverse product line, replacing the more traditional side-bay vehicles,” Schaefer says. “You have to be able to adapt with new distribution, service and selling systems,” he says. “Many years ago, drivers were salesmen going out to sell everything they had on their trucks that day. Now, we create orders for next-day delivery to increase efficiency.”

In addition, the rise in fuel costs has forced Ozarks Coca-Cola to reevaluate its delivery schedule as a whole. “We look very hard at our delivery frequency, to see if we can reduce it to offset the price increases,” he says.

Ozarks Coca-Cola has been experimenting with hybrid vehicles since 2006. Although it’s too soon to tell what kind of impact a hybrid fleet will have on the business, Schaefer is optimistic that it will help offset rising costs. “We have three Priuses in our system, along with Civic and Camry hybrids today,” Schaefer says. “We also have invested in three lightweight tractors and trailers to transport more product, effectively eliminating every eighth load.”

Ozarks Coca-Cola is also evaluating expansion in its production capabilities. Schaefer believes this will give more control over its inventory and costs. Research is being done on the feasibility of the production of can products and Dasani water. “Those are the things we’re looking at right now, and if we find a benefit to producing more items in the future, we will,” he says.

Industry Triumphs
In 2006, Ozarks Coca-Cola was named Manufacturer of the Year by the regional chamber of commerce. That same year, the company won an environmental excellence award from the Regional Sustainability Coalition. “We work very hard at recycling,” Schaefer says. “We recycle everything including office paper, shrink wrap, cardboard, PET bottles, banding and aluminum.”

Employees throughout the firm enjoy a family-oriented culture, which “really gives it heart,” Schaefer says. “People stay with the organization because of its challenging and fun atmosphere.”

Teamwork is Key

The firm emphasizes the importance of teamwork, and strives to include many of its long-term managers in corporate events and meetings. Schaefer says several employees have been key to the company’s success, including key managers Edwin Rice, chairman and CEO; Bruce Long, marketing and key accounts manager; Jack Burrell and Casey Eddings, branch managers; Marty Meyers, vice president and CFO; Randy Henkle, operations manager; Jack Burk in human resources; and Sally Hargis, vice president corporate strategy.

These key managers convene on a monthly basis to discuss the direction of the organization and departmental programs and issues. “Our intention is to build teamwork between departments,” Schaefer says. “We want to make sure people know that everything we do impacts another person.”

Since implementing these monthly meetings, the organization has received positive responses from employees. “One of our managers came up to me recently, and said we always thought we were good, but now, things are different,” Schaefer says. “Now, we have a deeper understanding of our contribution to the business and how our actions contribute to the success of the enterprise.”

 
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