On May 1st, James Quincey became the new chief executive officer at Coca-Cola, following Muhtar Kent who served as the company’s CEO for eight years. No one thinks that Quincey’s job is going to be easy. The newcomer will need to overcome a few major challenges if he intends to transform Coca-Cola, leading it to the new age.
The biggest issue on the table is sugar. Consumers are just not as fond of it as they once were and growing consumer awareness is not going anywhere. In an interview to Bloomberg, Quincey said the solution to the anti-sugar trend has three possible solutions: Reformulation where some of the sugar is replaced with sweeteners, new, less sweet products and smaller packages. Last year, Coca-Cola launched smaller-size cans that were a huge success and allowed the company to substantially increase its profit margin.
He also explained that the company was constantly eyeing areas outside of the soft-drink domain – energy drinks and coffee drinks for example. He explained that there were two reasons for the expected job cuts: Technology and refranchising of the company’s bottling businesses. Quincey was quite honest, stating that online shopping pose a major challenge for the company and saying Coca-Cola has evidently failed to transform its products quickly enough to adapt to an age where people order everything online rather than spend time in restaurants and shopping malls.
Will Coca-Cola succeed in keeping its status in a constantly changing reality? At iFOREX you can invest in Coca-Cola share CFDS, as well as in the share CFDs of other companies facing similar challenges such as Pepsi and McDonald’s. Keep tracking market trends. Want to see what’s happening in the market, right now? Login.