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The Coca-Cola Company Announces New Reporting Lines for Costa Coffee and innocent Businesses to Europe Operating Unit

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The Coca-Cola Company has announced organizational changes effective Jan. 1, 2025, where Costa Coffee and innocent Drinks will report to the company's Europe operating unit. Costa will remain a stand-alone business, while its ready-to-drink operations outside Europe will report through local operating units. Dogadan, a Turkish tea business, will report to Costa's retail business in Europe. The company's investment in Monster Beverage Corp oversight will move to President and CFO John Murphy. The Global Ventures group, established in 2019, will be sunset as part of this reorganization, with financial data for 2022-2024 being recast and made available in early 2025.

The Coca-Cola Company ha annunciato cambiamenti organizzativi che entreranno in vigore il 1° gennaio 2025, con Costa Coffee e innocent Drinks che riporteranno all'unità operativa europea dell'azienda. Costa rimarrà un'attività autonoma, mentre le operazioni pronte da bere al di fuori dell'Europa riporteranno attraverso le unità operative locali. Dogadan, un'azienda turca di tè, riporterà all'attività retail di Costa in Europa. L'investimento dell'azienda in Monster Beverage Corp sarà supervisionato dal Presidente e CFO John Murphy. Il gruppo Global Ventures, istituito nel 2019, sarà chiuso come parte di questa riorganizzazione, con i dati finanziari per il 2022-2024 che saranno aggiornati e resi disponibili all'inizio del 2025.

The Coca-Cola Company ha anunciado cambios organizativos que entrarán en vigor el 1 de enero de 2025, donde Costa Coffee e innocent Drinks reportarán a la unidad operativa de Europa de la empresa. Costa seguirá siendo un negocio independiente, mientras que sus operaciones de listas para beber fuera de Europa reportarán a través de unidades operativas locales. Dogadan, un negocio turco de té, reportará al negocio minorista de Costa en Europa. La supervisión de la inversión de la empresa en Monster Beverage Corp se trasladará al Presidente y CFO John Murphy. El grupo Global Ventures, establecido en 2019, se cerrará como parte de esta reorganización, y los datos financieros para 2022-2024 serán reformateados y estarán disponibles a principios de 2025.

The Coca-Cola Company는 2025년 1월 1일부터 발효되는 조직 개편을 발표했습니다. 이 개편에서 Costa Coffeeinnocent Drinks는 회사의 유럽 운영 부서에 보고하게 됩니다. Costa는 독립적인 사업으로 유지되며, 유럽 외 지역의 즉석 음료 운영은 현지 운영 부서를 통해 보고됩니다. 터키 차 회사인 Dogadan은 유럽의 Costa 소매 사업에 보고합니다. 회사의 Monster Beverage Corp에 대한 투자 감독은 사장 겸 CFO인 John Murphy에게 이관될 것입니다. 2019년에 설립된 Global Ventures 그룹은 이번 조직 개편의 일환으로 종료되며, 2022-2024년의 재무 데이터는 재구성되어 2025년 초에 제공될 것입니다.

The Coca-Cola Company a annoncé des changements organisationnels qui entreront en vigueur le 1er janvier 2025, où Costa Coffee et innocent Drinks feront rapport à l'unité opérationnelle européenne de l'entreprise. Costa restera une entreprise indépendante, tandis que ses opérations prêtes à boire en dehors de l'Europe feront rapport par l'intermédiaire des unités opérationnelles locales. Dogadan, une entreprise de thé turque, fera rapport à l'activité de détail de Costa en Europe. La supervision de l'investissement de l'entreprise dans Monster Beverage Corp sera transférée au Président et CFO John Murphy. Le groupe Global Ventures, créé en 2019, sera dissous dans le cadre de cette réorganisation, les données financières pour 2022-2024 étant restructurées et mises à disposition début 2025.

The Coca-Cola Company hat organisatorische Änderungen bekannt gegeben, die am 1. Januar 2025 in Kraft treten, wobei Costa Coffee und innocent Drinks an die europäische Betriebseinheit des Unternehmens berichten werden. Costa bleibt ein eigenständiges Geschäft, während die Ready-to-Drink-Operationen außerhalb Europas über lokale Betriebseinheiten berichten. Dogadan, ein türkisches Teegeschäft, wird an das Einzelhandelsgeschäft von Costa in Europa berichten. Die Aufsicht über die Investition des Unternehmens in Monster Beverage Corp wird an den Präsidenten und CFO John Murphy übergeben. Die 2019 gegründete Global Ventures-Gruppe wird im Rahmen dieser Umstrukturierung aufgelöst, wobei die Finanzdaten für 2022-2024 neu zusammengestellt und Anfang 2025 verfügbar gemacht werden.

Positive
  • Streamlined organizational structure potentially reducing operational complexity
  • Minimal employment impact with majority of roles continuing
  • Better regional alignment for Costa Coffee and innocent with their primary markets
Negative
  • Dissolution of Global Ventures segment requiring financial restatements
  • Potential short-term disruption during reorganization transition

Insights

This organizational restructuring represents a significant strategic shift in Coca-Cola's management of key acquisitions. Moving Costa Coffee and innocent to the Europe operating unit makes operational sense given their primary market presence. The streamlining should improve efficiency and decision-making speed by reducing organizational layers.

The move signals increased regional autonomy in managing these brands, which could lead to better market responsiveness and cost synergies. The separation of Monster oversight to the CFO while keeping operations under regional control shows a balanced approach to strategic investments versus operational management.

The timing of this announcement, with implementation set for 2025, allows for proper transition planning and minimal disruption. The commitment to maintain current employment levels suggests this is purely a structural optimization rather than a cost-cutting measure. Investors should expect improved operational efficiency and potentially better growth execution in European markets.

Changes Will Simplify Reporting Structure

ATLANTA--(BUSINESS WIRE)-- The Coca-Cola Company announced today that innocent Drinks and Costa Coffee will report to the company’s Europe operating unit, effective Jan. 1, 2025.

These organizational changes are intended to streamline and simplify the current structure. There are no significant numbers of employment changes, as the vast majority of current roles will continue.

Background

The Global Ventures group was established in 2019 primarily to oversee the company’s ownership of Costa, innocent and Dogadan, as well as the company’s investment in Monster Beverage Corp.

“As we look to our next chapter of growth, we have evaluated how to best set ourselves up for future success with these growth areas, and we believe now is the right time to have them work more directly with our operating units,” said Coca-Cola President and Chief Financial Officer John Murphy.

What’s changing

The following changes take effect Jan. 1, 2025.

  • Innocent, a 25-year-old, London-based maker of juices and smoothies, will report to the Europe operating unit. Coca-Cola has had an ownership stake in innocent since 2009. Innocent drinks are sold across Europe.
  • Costa will remain a stand-alone business and will report to the Europe OU. Costa is based in London, and the majority of the company’s retail and Express outlets are located in the United Kingdom and elsewhere in Europe. Costa’s ready-to-drink businesses outside of Europe will report through local operating units.
  • Dogadan, a Türkiye-based tea business that was founded in 1975 and in recent years has closely collaborated with the Costa business, will report into Costa’s retail business in Europe. Dogadan has been part of Coca-Cola since 2007.
  • Oversight of Coca-Cola’s investment in Monster will move to Murphy, while the respective geographies will be responsible for the underlying operations results.

Global Ventures is currently a separate operating segment. Global Ventures will be sunset as part of the reorganization, and the company will issue financials for 2022 through 2024 to reflect the changes. The recast data will be available publicly in early 2025.

About The Coca-Cola Company

The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries and territories. Our company’s purpose is to refresh the world and make a difference. We sell multiple billion-dollar brands across several beverage categories worldwide. Our portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Our water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Gold Peak and Ayataka. Our juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. We’re constantly transforming our portfolio, from reducing sugar in our drinks to bringing innovative new products to market. We seek to positively impact people’s lives, communities and the planet through water replenishment, packaging recycling, sustainable sourcing practices and carbon emissions reductions across our value chain. Together with our bottling partners, we employ more than 700,000 people, helping bring economic opportunity to local communities worldwide. Learn more at www.coca-colacompany.com and follow us on Instagram, Facebook and LinkedIn.

Forward-Looking Statements

This press release may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause The Coca-Cola Company’s actual results to differ materially from its historical experience and our present expectations or projections. These risks include, but are not limited to, unfavorable economic and geopolitical conditions, including the direct or indirect negative impacts of the conflict between Russia and Ukraine and conflicts in the Middle East; increased competition; an inability to be successful in our innovation activities; changes in the retail landscape or the loss of key retail or foodservice customers; an inability to expand our business in emerging and developing markets; an inability to successfully manage the potential negative consequences of our productivity initiatives; an inability to attract or retain a highly skilled and diverse workforce; disruption of our supply chain, including increased commodity, raw material, packaging, energy, transportation and other input costs; an inability to successfully integrate and manage our acquired businesses, brands or bottling operations or an inability to realize a significant portion of the anticipated benefits of our joint ventures or strategic relationships; failure by our third-party service providers and business partners to satisfactorily fulfill their commitments and responsibilities; an inability to renew collective bargaining agreements on satisfactory terms, or we or our bottling partners experience strikes, work stoppages, labor shortages or labor unrest; obesity and other health-related concerns; evolving consumer product and shopping preferences; product safety and quality concerns; perceived negative health consequences of certain ingredients, such as non-nutritive sweeteners and biotechnology-derived substances, and of other substances present in our beverage products or packaging materials; failure to digitalize the Coca-Cola system; damage to our brand image, corporate reputation and social license to operate from negative publicity, whether or not warranted, concerning product safety or quality, workplace and human rights, obesity or other issues; an inability to successfully manage new product launches; an inability to maintain good relationships with our bottling partners; deterioration in our bottling partners’ financial condition; an inability to successfully manage our refranchising activities; increases in income tax rates, changes in income tax laws or the unfavorable resolution of tax matters, including the outcome of our ongoing tax dispute or any related disputes with the U.S. Internal Revenue Service (“IRS”); the possibility that the assumptions used to calculate our estimated aggregate incremental tax and interest liability related to the potential unfavorable outcome of the ongoing tax dispute with the IRS could significantly change; increased or new indirect taxes; changes in laws and regulations relating to beverage containers and packaging; significant additional labeling or warning requirements or limitations on the marketing or sale of our products; litigation or legal proceedings; conducting business in markets with high-risk legal compliance environments; failure to adequately protect, or disputes relating to, trademarks, formulas and other intellectual property rights; changes in, or failure to comply with, the laws and regulations applicable to our products or our business operations; fluctuations in foreign currency exchange rates; interest rate increases; an inability to achieve our overall long-term growth objectives; default by or failure of one or more of our counterparty financial institutions; impairment charges, and risks regarding potential additional impairments; an inability to protect our information systems against service interruption, misappropriation of data or cybersecurity incidents; failure to comply with privacy and data protection laws; evolving sustainability regulatory requirements and expectations; increasing concerns about the environmental impact of plastic bottles and other packaging materials; water scarcity and poor quality; increased demand for food products, decreased agricultural productivity and increased regulation of ingredient sourcing due diligence; climate change and legal or regulatory responses thereto; adverse weather conditions; and other risks discussed in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2023, and subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements.

Investors and Analysts: Robin Halpern, koinvestorrelations@coca-cola.com

Media: Scott Leith, sleith@coca-cola.com

Source: The Coca-Cola Company

FAQ

When will Coca-Cola (KO) implement the new reporting structure for Costa Coffee and innocent?

The new reporting structure will be implemented on January 1, 2025, when Costa Coffee and innocent will begin reporting to Coca-Cola's Europe operating unit.

How will Coca-Cola (KO) handle Costa's operations outside Europe under the new structure?

Costa's ready-to-drink businesses outside of Europe will report through local operating units, while the main business will report to the Europe operating unit.

What will happen to Coca-Cola's (KO) Global Ventures group?

The Global Ventures group will be sunset as part of the reorganization, with financial data for 2022-2024 being recast and made available in early 2025.

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