Coca-Cola introduced its first officially authorized bottling franchise in 1899.
The agreement was made with Chattanooga businessmen Benjamin F. Thomas and Joseph B. Whitehead. They received exclusive rights to bottle Coca-Cola in much of the United States, creating the foundation of the independent bottling system that became central to the company's growth.
Before this arrangement, Coca-Cola was mainly sold at soda fountains. Bottling allowed consumers to buy the drink beyond pharmacies and refreshment counters, but it also required a practical division of responsibilities. The Coca-Cola Company supplied the concentrate and protected the brand, while local bottlers manufactured, packaged, and distributed the finished beverage.
The contract was famously written in broad terms and at a fixed price, which later gave the bottlers valuable territorial rights. The system helped Coca-Cola expand rapidly while keeping production close to local markets.