U.S. Coke Bottlers Urge Stability and Continuity, as Start of Isdell Era Nears. 'Build a Team.' 'Too Many Changes.' 'Through Some Turmoil.' 'Need Time to Season.' 'Fresh Perspective.'
As Coca-Cola Co prepares for start of Neville Isdell's administration, BD talks to multiple U.S. Coke bottlers and asks each: what would you urge incoming chairman/CEO to consider re North American Coke business? Nearly all bottlers cite need for stability and continuity in wake of numerous changes over past few years. Bottlers support North American chief Don Knauss. Declares one bottler: "Let Don Knauss do his job."
COO; Heyer. Several say they hope president/COO Steve Heyer stays, and several urge Isdell to resolve COO "situation" after Heyer did not get top job. Brands. Bottlers also want more brand focus. Top-10 bottler: "Company needs focus on marketing, marketing investment and getting back to the business of building brands." Contact. Bottlers also ask Isdell for more contact with them.
Bottlers. BD reproduces below actual -- and representative -- comments from multiple bottler interviews. Bottlers contacted ranged from small to top-10:
- "Isdell should establish his team and say these are the people who will be in place for the next three years. The bottlers need confidence that there will be people around to make some decisions. Our system is the strongest in the world. We need to know who will make things happen over the next three years. Neville should kick off the (U.S.) bottler meeting himself in Atlanta in August. He should say: 'We've gone through some turmoil, and we now need to go forward together.' That would be a big step forward. They also have to let us know Heyer's intentions and status. The (COO) situation needs to be resolved quickly. I'd like to see Heyer stay. He can shake things up and make things happen. I like Knauss, he's very straightforward. He needs to put in place a strong marketing team."
- "We have some good things going. I would encourage (Isdell) not to make wholesale changes until we give them time to work. We have new products, new packages, good advertising and a good promotion or two. Without naming names, we have a few people in marketing who seem to know what they're doing. I hope they stay, there has been a shortage of people in Atlanta who know about the soft drink business. I'd also encourage him to continue with a plan for efficiencies in production, distribution and purchasing."
- "It is paramount to forge relationships -- like (former president Don) Keough and (former chairman/CEO Roberto) Goizueta did -- with the bottlers, so we feel like we're one coalition against the world. There is too much of an ivory tower mentality in Atlanta."
- "We must elevate our trademarks and brands to their rightful position at the center and at the top. If we nurture them, they'll sustain us, they'll do more than sustain us. There's a possibility here of forging a strong leadership partnership between Isdell and Heyer. That could advance our business. We need to recreate and re-invigorate the excitement and energy and passion about the business. Knauss should have the opportunity to succeed. We have some capable people at the North American business, but they need time to season and get experience. Don Knauss needs to get his team lined up. He and they need the support of the company's (top) leadership."
- "First priority, top of mind, is to ensure the profitability of the bottlers. That's paramount. We've made progress, though we got off-track in the late 1990s. We need some stability. I hope (Isdell) builds a team, and it's a consistent team. We've had too many changes. I don't know Neville, but I've heard nothing but the best about him. I have great hopes."
- "Continuity is a big thing. It seems like yesterday that (former chairman/CEO Doug) Ivester left. In five years, we haven't done much. They need to figure out where Heyer fits in, quickly. They can't keep changing the agenda. Things don't turn on a dime, and we've been five years turning. I'm not negative, but too many people have been moved around. There hasn't been much continuity. Figure out the relationship with Steve Heyer. We can't deal with a lame duck. Too many people have been put in a lame-duck status. There have been too many false starts. They need to think about how the industry fits in with our society today with the obesity issue."
- "This is a great opportunity to come in with a fresh perspective on the realities of the marketplace, the Coke system and the business (and) to carefully and thoughtfully manage these realities in a way which would result in a better allocation of resources to invest more effectively in our brands. We've been very pleased with the innovation and better marketing over the last two years and hope that these efforts will accelerate in the future."
- "They've got a good game plan on improving bottler profitability. The company and the bottlers need to be on the same page, it's critical that the company and the bottlers have the same financial motives. Knauss is great, I hope they maintain him in place. Heyer -- I hope he and Neville find a way to work together."
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