The Coca-Cola Co., Atlanta, plans to divide into three businesses in its quest to reach the company’s 2020 Vision goals.
The Coca-Cola Co. on July 30 detailed plans for its new three-pronged operating structure. Effective Jan. 1, 2013, the company will organize around the three major operating businesses of Coca-Cola International, Coca-Cola Americas and Bottling Investments Group.
“This is the right structure for the next phase of our journey toward achieving our 2020 Vision,” said Muhtar Kent, chairman and chief executive officer. “We have a solid foundation and momentum in our business. Now is the time to take the next step in our evolution.
“By consolidating leadership of our global operations under two large, but similar sized geographic locations and BIG (Bottling Investments Group), we will streamline reporting lines, intensify our focus on key markets and create a structure that leverages synergies and gives us flexibility to strategically adjust our business within those geographies in the future.”
The 2020 Vision seeks doubling system revenues by 2020 while becoming a global leader in sustainable water use, packaging, energy and climate protection.
Coca-Cola International will consist of the company’s current Europe, Pacific and Eurasia & Africa operations. Ahmet Bozer, currently president of the Eurasia & Africa Group, will become president of Coca-Cola International on Jan. 1.
Coca-Cola Americas will consist of the company’s current North America and Latin America operations. Steve Cahillane, currently president and c.e.o. of Coca-Cola Refreshments, will become president of Coca-Cola Americas on Jan. 1.
Bottling Investments Group will oversee the company-owned bottling operations outside of North America. Irial Finan will continue as president of BIG.
The Coca-Cola Co. had net income of $4.87 billion, or $2.11 per share, in the six months ended June 29, which marked a 3% increase from $4.72 billion, or $2.02 per share, in the same time period of the previous year. Six-month net operating revenues increased 4% to $24.2 billion from $23.3 billion.
The Coca-Cola Co. currently is divided into the operating segments of Eurasia & Africa, Europe, Latin America, North America, Pacific and Bottling Investments. For the six months ended June 29, Pacific saw a 20% jump in operating income to $1.4 billion. Other increases came in Bottling Investments (10% to $125 million), Eurasia & Africa (8% to $642 million) and Latin America (3% to $1.4 billion). North America stayed about even with six-month operating income of $1.2 billion while Europe dropped 6% to $1.6 billion.
Internationally in 2012, the Coca-Cola Co. in June announced plans to invest an additional $3 billion in India and grow market share in the country’s non-alcoholic, ready-to-drink beverage market. With the additional investment, the Coca-Cola system now plans to invest $5 billion in India from 2012 to 2020.
“India is a strategic growth market for the Coca-Cola Co., ranking among our top 10 markets in volume globally and as the largest market in the Eurasia and Africa Group,” said Atul Singh, president and c.e.o. of Coca-Cola India and Southwest Asia.