Soda pop

13 December 2013 By Kevin Allison

A reorganization of the $175 bln beverage giant’s North America unit could herald a separation of the bottling business it bought in 2010. Cost-cutting may be on tap, too. That would keep investors sweet on Coke as rival Pepsi nurses strategic plans and contends with an activist.

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Coca-Cola, the world’s biggest maker of carbonated drinks, said on Dec. 12 that it would shake up the management of its North American business by splitting its marketing and bottling and distribution units into separate reporting segments. Steve Cahillane, who had been running Coca-Cola’s combined Americas business, will leave the company as part of the re-organization.

Coca-Cola’s shares were up 0.6 percent by mid-day in New York on Dec. 13.

The beverage group’s shares have made a total return of 83 percent since its main rival, PepsiCo, bought back its bottlers in 2009 – narrowly underperforming the S&P 500 Index. Pepsi’s shares have returned 59 percent over the same period. Coke followed Pepsi and bought its North American bottlers in 2010.

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