Muhtar Kent
|
 |
Earlier this month, Muhtar Kent took the reins from Neville Isdell as chief executive officer of Coca-Cola, the world’s largest beverage company.
The 55-year-old Kent, who worked with Isdell in Europe and has been described as his protege, has a strong background in bottling operations and broad international experience with the company.
This combination “puts him in a really good position to lead growth in the burgeoning international market,” noted Bill Bishop, president of Willard Bishop, Barrington. Ill.
International operations represent 80% of the company’s operating income, and present opportunities to help offset faltering U.S. sales.
Coca-Cola experienced a 1% decline in sales volume in its North American market last year — due in part to the weakened economy and declining sales of carbonated soft drinks. “The vast majority of growth opportunity for global CPG companies is outside North America,” said Lauren Torres, an analyst with HSBC Securities in New York.
In addition to exploring these opportunities, Coca-Cola remains committed to restoring its flagship North American market.
“Consumers are skewing more to better-for-you beverages, and sugared colas aren’t really in right now,” Torres said. “Coca-Cola has had to look to diversify and have more product offerings to satisfy the changing consumer.”
Recent additions to its portfolio of 450 still and carbonated beverage brands include Full Throttle Hydration, a non-carbonated energy drink that includes electrolytes, and reformulated Nestea Green Tea Citrus, which claims to contain 50% more antioxidants than before.
“Over the last three years, [Coca-Cola has] made the right steps, be it in diversifying their platform, improving their relationship with their bottlers, or continuing to grow in international markets,” Torres said. “I guess their one challenge going forward is to stimulate and grow the U.S. business, or North America in total, which has been an issue.”
It will also have to address rising energy costs and their impact on bottlers. “If your bottlers aren’t doing well because they’re absorbing all these higher costs, then Coca-Cola won’t do well,” Torres said.
Kent’s well prepared for this challenge. “He has a bottling history, so he understands the dynamic,” Torres said.
— GEORGE ELLIS
Recent articles on Muhtar Kent
You searched for: Muhtar Kent |
Hill Succeeds Chartrand at Acosta
Robert Hill Jr. will assume the role of president and chief executive officer of Acosta Sales and Marketing Co. on Jan. 1, while former CEO Gary Chartrand has been named executive chairman, the national brokerage firm said last week. Hill, who was also named to the company's board, will report to Chartrand, who will remain board chairman. Robert's
GMA Names Kent, Ansell to Its Board
The Grocery Manufacturers Association has elected to its board Muhtar Kent, president and chief executive officer of the Coca-Cola Co., and Jeffrey P. Ansell, CEO of Pinnacle Foods Group, GMA announced here yesterday.
SN Grocery, Center Store, Brands Archives
SN Power 50 for 2008
The success of Kroger Co. in managing through the current economic environment has propelled that companyÂ’s chairman and chief executive officer, David Dillon, to the No. 1 spot in
Subscribe / Renew to Supermarket News
The most reliable source of industry news and insight...in print and online.
- Subscribe Today and gain instant access to the online SN Archive
- Renew
- Sign up for email newsletter
