COCA-COLA CHALLENGE
Healthy agenda for new CEO
NEW YORK Coca-Cola Co.’s incoming CEO has his work cut out for him to bring the 130-year-old company into a millennial-dominated era.
James Quincey, who takes over as chief executive officer next year, is under pressure to dramatically cut the calories of Coca-Cola’s lineup — a move necessitated by shifting consumer tastes and antiobesity efforts.
And he can’t rely as much on the current crop of artificial sweeteners to get the job done, since many customers have turned away from aspartame and other additives.
The 51-year-old executive, who currently serves as Coca-Cola’s chief operating officer, also has pledged to modernize the company’s marketing and distribution at a time when more shoppers are researching and buying products online.
And shares of the Atlanta-based company have lagged behind those of PepsiCo Inc. and the broader market this year.
“He will push toward healthy,” said Jack Russo, an analyst at Edward Jones. He’ll probably “get the core company focused on doing what it needs to do, and that’s new products, innovation — maybe better marketing.”
Consumers in the U.S. and other developed markets are eschewing sugar and artificial ingredients, forcing Coca-Cola to diversify its product offerings.
The company is relying less on soda and pushing into healthier segments, including ready-todrink coffee, plant-based protein drinks, cold-press juices and dairy.
As he settles into the CEO job, Quincey plans to accelerate efforts to develop new products.
“Smaller packages, less sugar, more variants, better marketing,” he said on a conference call Friday. “We’re going to adapt to the changing customer landscape.”
The stakes are high: Per capita consumption of carbonated soft drinks fell to a 30-year low in the U.S. in 2015, according to Beverage Digest, a trade publication.