Atlanta, March 23, 2005 - The Coca-Cola Company today announced changes to its senior management team and operating structure. Neville Isdell, chairman and chief executive officer, said: "We are creating a new corporate function to integrate Marketing, Innovation and Strategic Growth Paths reporting to Mary Minnick. Additionally, we are realigning our Group structure in Europe and adjusting our structure for Asia and Eurasia and the Middle East. To lead new Groups, we are bringing on board system veterans and proven operators Dominique Reiniche and Muhtar Kent. They will bring fresh perspectives to our senior management team as we together work to implement our Manifesto for Growth."
Mr. Isdell continued, "We must ensure execution with excellence; inspire and motivate; promote entrepreneurship and accountability; and support the efforts of our bottling partners so that we are serving our consumers and customers every day. Our organization is evolving to be able to do this more effectively. We are truly fortunate to have such depth of talented leadership in our system, giving us the flexibility to deploy our senior management to reflect an evolving marketplace and intensify our focus on key growth markets."
The changes announced below are effective May 1, 2005.
Creation of New Integrated Corporate Innovation, Marketing and Strategy Function
The Company said that Mary Minnick will lead a new corporate function to oversee the close coordination of the marketing, innovation and strategic growth paths functions. Reporting to Ms. Minnick will be Chuck Fruit, chief marketing officer, Danny Strickland, chief innovation/research and development officer, and a head of strategic growth paths yet to-be-named.
Mr. Isdell commented: "We need an increasingly coordinated and integrated effort across our innovation, marketing and strategic growth paths corporate functions. Under Mary's leadership, this function will be at the forefront as we pursue the right growth opportunities, leverage consumer insights, and capitalize on our ability to develop new products, packages and technologies, supported by the right marketing platforms. Over the near term, as Mary prepares for her new role, she will also work with her successors in Asia to ensure a smooth handover of responsibilities.
"Mary's operating experience in a diversity of markets, ranging from the complex Japan market, to the growth engine of China makes her uniquely suited to this new role. During her 21-year career at our company, she has developed expertise in successfully building brands through the combination of effective sales, marketing and new product launches. Mary has a proven track record of developing good ideas and, most importantly, bringing those ideas through the system, using new manufacturing technologies and successfully commercializing them into new products. Mary has spent the past seven years living and working in Asia, including serving as president of Coca-Cola Japan -- perhaps our most vibrant market for the integration of innovation, marketing, and strategic opportunities. As president of Coca-Cola Asia for the past four years, Mary has employed that approach across critical markets to expand the Company's portfolio, drive supply chain efficiencies and launch many of the region's successful new products," said Mr. Isdell.
Realigned Group Structure in Europe
The Company also announced that Sandy Allan will retire from The Coca-Cola Company after a distinguished career spanning almost four decades.
Mr. Isdell said: "I am sorry that one of our most experienced operators will not be with us for this next part of our journey. Sandy's dedication to Coca-Cola and track record speaks for itself. His contribution to our Company in Asia and Europe has been remarkable. For the past several years, he has led these critical groups, and grown our business in those regions as well as built successful new brands to complement Coca-Cola and our other core brands. We will all miss Sandy, and on behalf of everyone at Coca-Cola, I would like to wish Sandy and his wife Haydee all happiness as they enjoy the next phase of their lives."
Upon Mr. Allan's retirement, the Company will realign its geographic Group structure in Europe. Mr. Allan will be working closely with the team on these efforts after May 1 to assure a smooth transition.
To better serve the growing European Union market, the Company is creating a European Union Group, which will include our operations in all of the current member states of the EU as well as the European Free Trade Association countries. It will be led by Dominique Reiniche, who was most recently president of Coca-Cola Enterprises (CCE) Europe. Ms. Reiniche will continue in her current role at CCE and transition responsibilities by May 1.
"I am delighted to welcome Dominique to our Company," said Mr. Isdell. "As head of CCE's entire European operations, she built a dynamic and successful business and won the respect of partners, customers and competitors. Dominique's appointment reflects her strong commercial and marketing background in companies such as Kraft Jacobs Suchard and Procter & Gamble, and her work in both our Company and our bottling system."
Adjusted Group structure for North Asia, Eurasia and the Middle East; Formation of Southeast Asia & Pacific Rim Group
The Company also announced the creation of two new operating Groups: a North Asia, Eurasia & Middle East Group, and a Southeast Asia & Pacific Rim Group.
Mr. Isdell said: "In Central Europe, Eurasia and Asia, there are several critical markets where the development of our business is at an important stage. These include China, Russia and some significant developing markets in Eurasia and the Middle East.
"Despite their obvious disparity in economic development, these markets share some common characteristics for us, including: a need to focus on the expansion of our distribution over a large geographic territory and within major urban centers; a network of consumer connections that is still being built; and a dynamic retail sector that is still being shaped," Mr. Isdell continued.
"In many ways, the model for these markets that we hope to emulate is our business in Japan. Following sustained and long-term investment in infrastructure, relationships and innovations, it is now one of the most significant contributors to the Company's profits.
"Therefore, to bring operational focus to these markets with similar challenges, and to leverage the experience of our business in Japan, we are creating the new North Asia, Eurasia & Middle East Group. This Group will include China, Japan, the Eurasia & Middle East Division, the markets of Russia, Ukraine and Belarus and other European countries not in the EU Group. We are pleased that Muhtar Kent, a proven veteran of the Coca-Cola system, has agreed to return to our company to lead this Group. Muhtar has a deep understanding of building brands and operations in both developed and developing markets, as well as expertise in creating excitement and driving sales for commercial beverages," concluded Mr. Isdell.
Mr. Kent will assume his position on May 1, and will work with the Board of Directors of the Efes Beverage Group, where he is currently president and chief executive officer, to identify his successor.
The Company said that its new Southeast Asia & Pacific Rim Group will be led by Patrick Siewert, who was most recently president, East and South Asia Group. This Group will include several rapidly developing markets -- such as India, the Philippines and the Company's Southeast & West Asia Division -- that require a sustained focus on operations as the Company develops and expands its infrastructures to serve these markets. It will also include the Company's South Pacific & Korea Division, focusing on the Coca-Cola Amatil territories.
"Patrick brings to this position a wealth of operational experience and a deep understanding of many of these markets. He will be ideally suited to focusing on the complex challenges and opportunities on a market-by-market basis," commented Mr. Isdell.
Ms. Minnick and Ms. Reiniche, and Messrs. Kent and Siewert, will all report directly to Mr. Isdell. The changes announced today affect some Group and Divisional reporting lines but have minimal impact on current Division structures. The structure and leadership of the North America, Latin America and Africa Groups remain unchanged.