Coca-Cola Don’t Shake It!
Big shakeup at the world’s largest manufacturer of fizzy brown sweet stuff: incoming Coca-Cola CEO and bearer of an exquisitely nobby name, James Quincey, has vowed to curb the business’ profligate ways, cutting $800m in costs every year, and planning an additional $3bn in savings. The over-arching plan is to refocus the business on developing new drinks and selling ingredients to partners. Accordingly, and as seen back here in the Beloved C., Coke has been divesting itself of bottling plants left, right and centre, and this restructuring has come with some pain – to whit, a global decline of 11% in revenues last quarter. And while there has been some belt-tightening already, there has also been a big payola for one GSD Marketing Ltd, who were appointed to do the creative on Coke’s new “One Brand” strategy, with the same branding on all four current variants, and all four featured in all advertising.
Comment: Like big tobacco before them, the world’s soft drink makers are waking up to a market that is showing signs of moving on.