Coca-Cola Splits North American Business

The company is dividing its North American business into two units, returning to a franchise model instead of owning bottlers.

December 16, 2013

ATLANTA – The Coca-Cola Co. is splitting its North America business into two operating units: Coca-Cola North America and Coca-Cola Refreshments. Effective Jan. 1, 2014, the new structure will help Coca-Cola streamline operations and accelerate its refranchising to independent bottling partners.

J.A.M. “Sandy” Douglas will lead Coca-Cola North America and also continue his role as global chief customer officer. Paul Mulligan will lead Coca-Cola Refreshments (CCR), the bottling operations of North America, as president.

The Coca-Cola Americas operating structure will cease to exist. The Latin America Group, led by Group President Brian Smith, will become part of Coca-Cola International.

“We organized the business to intensify focus on key markets, streamline reporting lines and provide flexibility to adjust the business within these geographies in the future,” said Muhtar Kent, Coca-Cola chairman and CEO. “Now, we are in a position to leverage this flexibility to return to a traditional company and bottling operating model in North America, which will enhance our focus on execution and accelerate the refranchising of our bottling system in our flagship market.”

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