Dive Brief:

• Coca-Cola will retrofit 100 of its service vans to run on hybrid-electric power as the soft-drink giant looks to reduce costs.
• The vans will use technology from Boston-based XL Hybrids Inc., a start-up with ties to the Massachusetts Institute of Technology.
• The deal with XL Technologies comes as Coca-Cola invests heavily to reduce fuel costs. The company already operates some 870 alternative-fuel vehicles in its fleet.

Dive Insight:

Save money. Save the planet. What's not to love? Well, the battery supply chain, for one. As companies with massive vehicle fleets like Coca-Cola test the new technologies, the ability of the hybrid-vehicle start-ups to produce products at scale will be sorely tested. And so far, no company has done particularly well at that. Here's hoping XL Technologies (which also has a deal with FedEx) can get past that hurdle.