Coca-Cola Co, working to regain momentum, names system veteran Brian Dyson vice chairman/COO for two-year term to help chairman/CEO Doug Daft run company. Dyson, age 65, formerly ran Coke U.S.A./North America 1978-1986; left that job in 1986 and became president of then newly-created Coca-Cola Enterprises. Left CCEsenior management in 1992 after it combined with Coke Johnston Bottling, and Summerfield Johnston and Henry Schimberg took over management. Since then, he has served as Coke consultant. Bottlers/ analysts generally see Dyson move as positive, but some analysts note reservations.
Dyson's role. Dyson will oversee Coke's operating groups, so reporting to him will be: Jeff Dunn, head of Americas; Charlie Frenette, who runs Europe/Africa; and Sandy Allan, who heads Asia. Reporting directly to Daft will be: Dyson; Steve Heyer who runs new business/joint ventures/marketing; James Chestnut who heads finance/corporate functions; and Coke general counsel Deval Patrick.
Talk with Daft. BD asks Daft: State of Coke at this time? "Very strong. Back on the path we always need to be. Yes, a few areas still need improvement, but that's what a business is all about ... The results are quality, the money that's there is money to put in the bank. It's a pile of cash, as opposed to a pile of imagination."
Why Dyson? "Enormous relevant experience. (He's) a great operator, great marketer, good thinker, North American and Latin American experience. He's able to form relationships with a wide variety of people (like) customers and leaders of countries. He's had a lot of great successes. Plus, I've worked with Brian closely for the last couple of years and have formed a close relationship with him ... I work well with Brian."
Any other imminent management changes? "No. We've got a good organization. Organizations must continue to evolve ... Stability is not a sign of the times in the year 2001 for any corporation. This is a pretty fast-changing world, and you have to keep your organization up with it. But, having said that, no thoughts at all (on imminent change)."
Was Coke board united on Dyson appointment? "Absolutely. I took it to the board. One phrase struck a chord. They (directors) said, 'We are a lot further along the path than you even think you are.' My response is that I want to move faster, I want to get to our goals more quickly. So, it's faster and better. This is the right goal to have."
Board decision. Informed sources say final decision to call on Dyson occurred at Coke board meeting held Thursday, July 19, just one day after Coke reported 2nd quarter volume growth of +3.47%. Insiders say Dyson is respected by both Daft and former president Don Keough, who is currently influential consultant to company. Vacancy. Coke has been without president/COO since resignation of Jack Stahl last March. Ahead. Naming Dyson vice chairman/COO leaves president spot open; executives say spot could be filled "down the road" by Frenette, Heyer or Dunn.
Dyson: the man. Dyson joined Coke 1959 in homeland Argentina; now lives in Atlanta, remains Argentine citizen. Held positions with Coke in Venezuela, Mexico, Caribbean. Coke system executives generally laud Dyson's "toughness" and "keen sense of strategy." General word on Dyson is "good career" at Coke, but he hit bit of a snag at CCE, as he ran it in its difficult early years. Launching pad. However, several executives note -- in words of one -- "when Brian was at CCE, he built the launching pad that enabled Summerfield and Henry to launch their rocket." Adds, "launching pads are less glamorous to build than rockets, but rockets don't go anywhere without launching pads." New Coke. Dyson was running Coke U.S.A. when company infamously changed formula; however insiders point out decision was made, not just by Dyson, but also by then Coke chairman Roberto Goizueta and president Don Keough.
Dyson: the views. Bottlers/other executives describe Dyson as smart, confident, "make-it-happen guy." Senior Coke system executive who has known Dyson for years: "He's a great strategist. He's an intense manager who's mission-oriented. And he has a deep understanding of both the concentrate and the bottler businesses." Coke bottlers. Bottlers generally pleased, hope Dyson can help bring some "excitement." CCE CEO Lowry Kline: "Brian is a veteran of the Coca-Cola system with tremendous experience and extensive knowledge of Coca-Cola Co and the Coca-Cola bottling business. We welcome his involvement over the next two years and look forward to a continued strong partnership with Doug Daft and Brian as we address and capture the opportunities for our business in North America and Western Europe." Other bottlers: 1) "When he was in charge of (Coke) U.S.A., he made things happen. We need some excitement, and he's known for that. He may be able to bring back some of the fun." 2) "He did have a level of intensity that was admirable, and he could generate enthusiasm and excitement. I hope he'll concentrate on (need for) good marketing." 3) re years at helm of CCE: "He wasn't a bottler, and it's unfair to say he messed up at CCE. Because he wasn't a bottler, he could only take it to a certain level." 4) "He has a proven, positive track record." 5) "Wow."
'Pepper' in his blood. Dyson not available for interview, so BD goes to the archives. In 1986, Dyson told BD's Future Smarts conference: "The one point that I will make about the soft drink industry is that I am absolutely toweringly convinced that we will continue for many years to experience strong growth, without any question, strong growth. Why? Because we say so. Because we're going to make it happen ... We will overcome any obstacles that a whole lot of dismal people clearly will bring up." Author. In 1995, Dyson wrote book, "Pepper in the Blood." Book has nothing to do with CSD brand owned in U.S. by Cadbury Schweppes. Instead, book is tale of female athlete who "learns that to rise above failure, she must have ... 'pepper in the blood.'" Ironically, one theme in book is comeback.
World according to Dyson. 'Put it on the table, man.' In 1984, Dyson told BD (BD 6/22/84): "There's an old saying that you can only live for a few days without food or a few hours without water or a few minutes without air, but you can live forever without any new ideas. And (our) mindset today is, 'you got an idea, put it on the table, man. I want to hear it. I'm not going to get uptight about it.'" New Coke 'shook' us up. Asked in 1986 (BD 9/29/86) about new Coke, Dyson notes: "In human terms, it shook up a lot of people. Including us. It turned out to be a serious test where some showed their abilities and others were found wanting."
Wall Street views; 'I hope he's up to the challenge.' Wall Street analysts: Marc Cohen, Goldman Sachs: "We see the appointment having both positive and negative sides. On the plus side, Brian is very seasoned, strong analytically and can bring clear vision to bear on the issues that need to be addressed to improve operations in some of KO's trouble spots. On the minus side, his execution record may be open to some question, as CCE's performance was erratic during his leadership tenure." Andrew Conway, Credit Suisse First Boston: "This is a multi-faceted and complex job that demands extensive travel, rapport with bottlers and superb communication and operation skills. The global soft drink operating environment has changed a great deal since Brian last managed a business, I hope he's up to the challenge." Bill Pecoriello, Sanford Bernstein: "(Dyson's) appointment re-enforces the management team at a time when Coke is struggling with several key strategic issues such as sharing the profit pie with bottlers, becoming a total beverage company, and returning to its roots as a great marketing company." Adds, "the question becomes, how quickly will management solve these issues in a world where consumer, competitor, bottler and retailer issues are changing at a fast pace."
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