Coke makes significant management change. Adds company's huge Latin American operation to responsibilities already handled by executive vp Steve Heyer. Having joined company in March 2001, Heyer now handles and/or oversees: 1) Latin America. 2) global juice business strategy. 3) joint ventures. 4) marketing. 5) concentrate manufacturing. 6) information technology. 7) technical and procurement. Plus. Some Coke system executives and analysts see latest move as part of continuum that could lead to Heyer becoming company president down the road. Says one executive: "(This move is) certainly a feather in Steve's cap." Heyer has gained respect of many senior Coke executives. Several cite his "focus" and "ability to get stuff done."
Perspective. In internal company memo, Coke chairman/CEO Doug Daft lauds Heyer as "valuable asset to the company" and cites "his contributions." Coke system executive: "Daft brought Heyer in a year ago and helped train him. (Daft) feels good about this move and about Steve getting operational experience." CCE chairman. Asked about Heyer the man, CCE chairman/CEO Lowry Kline says: "Steve has been both enjoyable and productive to work with, because of his relaxed demeanor and candid, direct style." Adds, "he has a keen intellect and is very pragmatic in his approach to our respective businesses." Asked about Heyer's potential impact on Coke system, Kline declares: "Steve wants to re-examine everything we do in the Coca-Cola system, and we welcome that scrutiny as we develop joint strategies to capture future growth opportunities." Wall Street. Goldman Sachs' Marc Cohen notes Heyer's "experience running one of KO's regions is essential to his consideration for a higher role." Credit Suisse First Boston's Andrew Conway says move "signals ... confidence" in Heyer by Daft and Coke's board. UBS Warburg's Caroline Levy: "Mr. Heyer is in line for the CEO role."
Structure and hierarchy. Heyer reports to Daft. Jeff Dunn -- who continues to report to vice chairman Brian Dyson -- had been responsible for both North America and Latin America. Dunn will now focus on North America plus adds oversight of Minute Maid North America which is run by Don Knauss. Knauss will report to Dunn "specifically regarding North American operations." However, Don Short both maintains strategic oversight of Minute Maid globally and runs Minute Maid non-U.S. operations; Short reports to Heyer. Re Dunn, Daft notes: "Jeff and his team will work to generate growth and build on the current positive momentum in North America." One Coke system executive says, "Jeff is happy about that. He wanted to focus on North America."
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