CHICAGO - IGA here is considering a proposal to split itself into three wholly owned companies, Thomas S. Haggai, chairman and chief executive officer, told SN last week.
The three companies - IGA USA, IGA International and IGA Coca-Cola Institute - would operate under a trusteeship called IGA Inc., which would continue to be based here and which would control the intellectual capital of the enterprise, Haggai said.
Haggai said the split would enable IGA retailers in the U.S. and abroad to take advantage of unique marketing, operational and legal differences in their respective market areas.
During 2005, IGA's U.S. stores accounted for $6 billion, or 31% of the company's $19.1 billion volume, while the international operation, including Canada, accounted for the other 69%, or $13.1 billion.
IGA Inc. would have a chairman/CEO and a board of directors, while the domestic and international offshoots would have their own chairmen/CEOs and directors, and the institute would have its own president, he said.
If the split takes place, Haggai said he expects to remain as chairman of the parent company "as a bridge," though he said he would like to see the chairmanship rotated every few years.
He is also slated to become chairman and CEO of the international company, while the search continues for a chairman and CEO of the U.S. operation.
Once that executive is selected, Haggai said he will move the international base of operations to his offices in High Point, N.C., and allow the new chairman of the domestic company to run that business from here "without me looking over his shoulder, so he can make whatever changes he deems appropriate," Haggai told SN.
Paulo Goelzer will continue as president of Coca-Cola Institute - IGA's educational arm here that trains members to be better retailers. The institute has locations in the U.S., Australia and China, plus Web-based programs.