The Coca-Cola Company
) recently announced organizational and management changes in its
Coca-Cola Americas to speed up refranchising to independent
bottling partners. Effective from Jan 1, 2014, the North
American business of The Coca-Cola Company will be segregated
into a traditional company and bottler operating model.
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The North American business will comprise two operating units,
Coca-Cola North America (CCNA) and Coca-Cola Refreshments (CCR).
Coca-Cola North America will be led by J.A.M. Douglas who will
head North America Brands, Foodservice, Brand Commercial, Retail
Sales, Research & Development, Venturing and Emerging Brands,
Strategy, Franchise Leadership and Transformation and the
Canadian franchise operations.
Coca-Cola Refreshments (CCR), the bottling operations of North
America, will be headed by Paul Mulligan. Coca-Cola
Refreshments will be considered as a part of Bottling Investments
Group (BIG). Mulligan will lead the operations of CCR Canada,
Product Supply Chain and Service, Bottler Commercial, Customer
Care and Region Sales.
Changing consumer preferences, increasing health consciousness,
rising obesity concerns and growing regulatory pressures have
tremendously pressurized the carbonated soft drinks (CSD)
category in North America. These category headwinds are thus
significantly affecting CSD sales of
), Coca-Cola and another beverage company,
Dr Pepper Snapple Group Inc.
). The present changes will further boost the growth of the
Last year, the company plans to launch a new beverage partnership
model, under which it will grant new expanded U.S. territories to
five of its bottlers to distribute its beverages. The agreement
is expected to improve the efficiency of the operating
territories and overall profits in the U.S. by shifting to a more
The Coca-Cola Company carries a Zacks Rank #3 (Hold).