The Coca-Cola Company
) recently announced plans to streamline its operating structure
and make certain management changes.
Coca-Cola currently reports its operating results under six
segments, broadly geographical, save one: Eurasia & Africa,
Europe, Latin America, North America, Pacific, Bottling Investments
and Corporate. Effective from January 1, 2013, the company will cut
down its operating segments to three, namely Coca-Cola
International, Coca-Cola Americas and Bottling Investments Group
The Coca-Cola International business will consist of the current
Europe, Pacific and Eurasia & Africa segments. The Coca-Cola
Americas will consist of the company's North America and Latin
America operations, and the BIG group will comprise the
company-owned bottling operations outside North America.
As regards the management changes, Ahmet Bozer and Steve
Cahillane have been given much larger responsibilities to serve as
presidents of the Coca-Cola International and Coca-Cola Americas
segments, respectively. Irial Finan will continue serving as the
president of the BIG group. Ahmet Bozer is currently serving as the
president of the Eurasia & Africa group and Steve Cahillane is
right now the president and chief executive officer of Coca-Cola
Refreshments (CCR) in North America.
We currently have a Neutral recommendation on The Coca-Cola
Company. The stock carries a Zacks #4 Rank (a short-term Sell
We are encouraged by the company's global reach, strong brand
power, expanding presence outside the U.S. and its solid cash
position. Moreover, the company's acquisition of
) Bottling business and its productivity initiatives are expected
to result in significant cost savings.
However, Coca-Cola needs to ramp up its advertising spending to
match arch competitor
) increased focus on North American beverages. Moreover, rising
costs of inputs have hurt the company's margins.
COCA-COLA ENTRP (CCE): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
To read this article on Zacks.com click here.