Coca-Cola Co. is making management changes involving its marketing and European units as it tries to boost profits.
Atlanta-based Coke, the world's largest beverage maker, said it has assigned Mary E. Minnick, president and chief operating officer of its Asia division, to lead a new corporate function overseeing the coordination of Coke's marketing, innovation and strategic growth segments. Coke's senior marketing and innovation officials will report to Ms. Minnick.
The company also announced Sandy Allan, president and chief operating officer of Coke's European group, has decided to retire, and said it will make changes to its European management.
Upon Mr. Allan's retirement, the company will realign its geographic group structure in Europe. Mr. Allan will work with the team on these efforts after May 1, when the management changes take effect, to assure a smooth transition. The company said its new European Union Group will include its 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 Inc.'s European Group.
In addition, Coke announced the creation of two new operating groups, a North Asia, Eurasia and Middle East Group, and a Southeast Asia and Pacific Rim Group.
The changes follow Coke's announcement last month that it would renew its focus on marketing Diet Coke. It said it wasn't satisfied with a 30% increase in fourth-quarter earnings because of only modest growth in revenue and volume. While the results beat Wall Street expectations, executives said Coke's performance in recent months doesn't meet the standards the company and the public have come to expect.
When Coke reported earnings last month, it said sales remained strong in high-growth markets such as China, Russia and Brazil, but growth slowed in India following a price increase on a popular, single-serving bottle. Analysts were encouraged by a rebound in Europe , where volume rose 3% despite a 15% decline in Germany. Coke continued to be hurt in Germany by a diminished presence in discount chains, which have been selling more private-label drinks to comply with a law encouraging returnable bottles. Coke is moving to engineer a rebound in Germany by rolling out a new Coke contour bottle and allowing discounters to stamp their names on bottles.
Muhtar Kent, 52, will lead the North Asia, Eurasia and Middle East Group, including China, Japan, the Eurasia and Middle East Division, the markets of Russia, Ukraine and Belarus and other European countries not in the EU Group. Coke said Mr. Kent has served in a variety of company leadership positions over the past 25 years, and most recently served as a board member of the company's Turkish bottler, Coca-Cola Icecek.
The company's new Southeast Asia and Pacific Rim Group will be led by Patrick Siewert, 49, who has served as president of the East and South Asia Group since August 2001. The Southeast Asia and Pacific Rim Group will include India, the Philippines and Coke's Southeast and West Asia unit. It will also include the company's South Pacific and Korea unit.
Ms. Minnick, Ms. Reiniche, Mr. Kent and Mr. Siewert will all report directly to Coke Chairman and Chief Executive Neville Isdell.
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