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Scott Uzzell, president of Coca-Cola’s Venturing and Emerging Brands (VEB) business, outlined in a December 4 memo several organizational changes to take effect in January. The changes, including some staff shifts, will “sharpen our focus” related to the current marketing strategy and accelerate the growth of its beverage portfolio. VEB’s role – “futurist, investor, incubator and integrator“ – is to spot the right trends, invest in them, incubate them “and, finally, help integrate them into our broad business system.” With that in mind, VEB will create several new business units that will nurture acquired brands: imported mineral water brand Topo Chico and coconut water maker Zico will move into the Still Business Unit; Hansen’s and Blue Sky Beverage Company will move to the Sparkling Business Unit; and Hubert’s Lemonade and VEB’s Natural Channel Sales Team will be folded into the Minute Maid Business Unit based in Texas. Other brands – Fairlife, Suja, and BodyArmor – will not be
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"Coca-Cola VEB Set to ‘Sharpen Focus’ on Incubation in 2019", BevNET.com, December 07, 2018
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| Comment & Opinion |
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Outgoing Coca-Cola Chairman Muhtar Kent – he’s retiring in April 2019 – says running a global business is tougher than ever because of the competition, of course, but also because of “sociopolitical dynamics,” more unknowns – like Brexit, U.S. trade wars, and currency fluctuations – and “more volatility, constant volatility." But that’s not all that gives CEOs anxiety. Also at work are a “global war for talent” and “digitization," he told CNBC. Kent, a 40-year veteran of Coca-Cola, will be replaced as chairman by CEO James Quincey.
"Coca-Cola chairman: 'More unknowns, more volatility' are making running a global business tougher", CNBC.com , December 07, 2018
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| Companies, Organizations |
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Campbell Soup is casting its net wide for potential buyers of its money-losing carrot, smoothie and fruit beverage company Bolthouse Farms, continuing its withdrawal from the fresh food industry that proved to be a poor fit. The company distributed the financial books for Bolthouse, and has begun the process of divesting its Garden Fresh Gourmet business, purchased in 2015 for $231 million. Among the potential buyers for Bolthouse is former Bolthouse CEO Jeffrey Dunn, who has talked to private equity funds to help raise money to fund a bid. Campbell paid $1.55 billion for Bolthouse Farms in 2012, when the brand had more than $100 million in earnings before interest depreciation and amortization.
"Campbell launches sale of Bolthouse Farms business", CNBC.com, December 03, 2018
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| Market News |
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Australian bottler Coca-Cola Amatil (CCA) has decided to divest the loss-making SPC fruit and vegetable cannery it purchased in 2005 after years of struggling to make it profitable. Analysts believe the sale would give CCA the cash it needs to invest in new business areas, such as acquisition of some parts of Lion Dairy & Drinks, and right itself after some setbacks. Earnings for 2018 are likely to be hurt by weaker beverage sales in Australia, soft demand in Indonesia, and the impact of container deposit schemes that have forced the price hikes in several states and Canberra. The company is expected to concentrate on growing categories like energy drinks and flavored milk and smoothies, increasing marketing efforts for what he called “sleeping beauties and blockbuster” lines, and introducing more enhanced and premium options.
"SPC sale could provide much-needed impetus for Coca-Cola Amatil", Beverage Daily, December 05, 2018
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The office of Pakistan Prime Minister Imran Khan issued a statement saying that PepsiCo and Coca-Cola have committed to investing an additional $1.4 billion in the coming years. The country is beset with economic and financial problems, especially a swelling current account deficit that has pushed it to seek loans from China and Saudi Arabia and a bailout from the International Monetary Fund. According to the prime minister’s office, PepsiCo will invest another $1.2 billion over the next five years, while Coca-Cola will invest $200 million on top of the current $500 million. Despite Pakistan’s economic woes, consumer goods companies see the world’s sixth most populous country (208 million people) as a promising market.
"Pepsi and Coca Cola pouring $1.4 bln into Pakistan - government", Reuters, November 28, 2018
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