Dive Summary:
- Coca-Cola Americas has announced major management restructuring as part of an effort to improve distribution.
- Coke’s bottle manufacturing inside the U.S. and Canada will be handed over to the company’s international bottling group.
- The new structure should help Coke transfer warehousing and distribution back to independent bottlers.
- Steve Cahillane, current president of Coca-Cola Americas, plans to resign.
Dive Insight:
Industry analysts suggest the new refranchising effort is likely to improve operations efficiency and increase returns for the Coca-Cola brand. The restructuring comes in the wake of sluggish growth in the U.S., Brazil and Mexico, as noted by the Wall Street Journal.