The Coca-Cola Company announced strategic steps to reorganize and better enable the Coca-Cola system to pursue its Beverages for Life strategy, with a portfolio of drinks that are positioned to capture growth in a fast-changing marketplace.
The company is aiming to build a networked global organization, combining the power of scale with the deep knowledge required to win locally. The company will create new operating units focused on regional and local execution that will work closely with five marketing category leadership teams that span the globe to rapidly scale ideas.
The company’s current model includes 17 business units that sit under four geographical segments, plus Global Ventures and Bottling Investments. The company’s nine new operating units will replace current groups and business units, effective Jan. 1, 2021, subject to consultation where required under local laws. These changes will help eliminate duplication of resources and enhance the company’s ability to scale new products more quickly.
The operating units and their geographies and presidents are:
North America: Alfredo Rivera, former president of the Latin America group. Rivera’s appointment was announced Aug. 24, and he has already started his new role.
Latin America: Henrique Braun, current president of the Brazil business unit. Braun’s appointment was announced Sept. 1.
Europe: Nikos Koumettis, current president of the Europe, Middle East & Africa group. Koumettis’ appointment was announced Sept. 1.
Africa: Bruno Pietracci, current president of the Africa & Middle East business unit.
Eurasia and Middle East: Evguenia Stoichkova, current president of the Turkey, Caucasus and Central Asia business unit.
Japan and South Korea: Jorge Garduno, current president of the Japan business unit.
Greater China: Vamsi Mohan Thati, current president of the South Pacific business unit.
ASEAN and South Pacific: Claudia Lorenzo, current president of the ASEAN business unit.
India and Southwest Asia: Sanket Ray, current chief operating officer for Mainland China.
In addition to the geographical operating units, Jennifer Mann will continue to serve as president of Global Ventures, and Marcelo Boffi will continue to serve as president of Bottling Investments.
All operating leaders will report to President and Chief Operating Officer Brian Smith.
The company also announced the following appointments of operational leaders within its three largest operating units:
Latin America: Roberto Mercade will become president of operations, North; he currently serves as president of the Latin Center business unit. Luisa Ortega will become president of operations, Central; she currently serves as president of the South Latin business unit. The president of operations, South will be announced later.
Europe: Lana Popovic will become president of operations, Western Europe; she currently serves as president of the Central and Eastern Europe business unit. Alanna Cotton will become president of operations, Central and Eastern Europe; she currently serves as chief marketing officer for stills beverages.
North America: Zoran Vučinić will become chief operating officer; he currently serves as chief operating officer, U.S.A. Bottler Delivered Brands, Coca-Cola North America. Kathleen Ciaramello will become chief customer officer; she currently serves as president, Foodservice and On-Premise, Coca-Cola North America.
T. Krishnakumar, current president of the India and Southwest Asia business unit, will be chairman of Coca-Cola India Inc. He will be responsible for building and strengthening critical local partnerships in India, supporting the new operating unit leadership team.
Global category leads
Innovation, marketing efficiency and effectiveness are top priorities for the company. The Coca-Cola Company is conducting a portfolio rationalization process that will lead to a tailored collection of global, regional and local brands with the potential for greater growth. The company, which is aiming to reinforce and deepen its leadership in five global categories, named the following presidents:
Coca-Cola category: Selman Careaga, current president of the sparkling business unit for Coca-Cola North America.
Sparkling Flavors category: Jasmin Vinculado, current sparkling general manager for the Mexico business unit.
Hydration, Sports, Coffee and Tea category: Matrona Filippou, current president of the Southern and East Africa business unit.
Nutrition, Juice, Dairy and Plant category: Sedef Salingan Sahin, current vice president of operations for the Europe, Middle East & Africa group.
Emerging categories: leadership appointment will be announced later.
The leaders of these categories will work across the networked organization to build the company’s brand portfolio and win in the marketplace. Global category leads will report to Chief Marketing Officer Manolo Arroyo.
In addition, the company announced senior vice presidents of marketing for the largest operating units:
Latin America: Javier Meza, current chief marketing officer for sparkling beverages.
Europe: Walter Susini, current head of marketing for the Western Europe business unit.
North America: Melanie Boulden, current president of the stills business unit for Coca-Cola North America.
The company also announced the creation of Platform Services, an organization that will work in service of operating units, categories and functions to create efficiencies and deliver capabilities at scale across the globe. This will include data management, consumer analytics, digital commerce and social/digital hubs. Platform Services is designed to improve and scale functional expertise and provide consistent service, including for governance and transactional work. This will eliminate duplication of efforts across the company and is built to work in partnership with bottlers. Platform Services will be led by Senior Vice President and Chief Information and Integrated Services Officer Barry Simpson.
The company’s structural changes will result in the reallocation of some people and resources, which will include voluntary and involuntary reductions in employees. The company is working on this next stage of design and will share more information in the future. In order to minimize the impact from these structural changes, the company also announced a voluntary separation program that will give employees the option of taking a separation package, if eligible. The program will provide enhanced benefits and will first be offered to approximately 4,000 employees in the United States, Canada and Puerto Rico who have a most-recent hire date on or before Sept. 1, 2017. A similar program will be offered in many countries internationally. The voluntary program is expected to reduce the number of involuntary separations.