Beverage giant and blue-chip stock Coca-Cola (NYSE: KO) is about to see a major change in its leadership. The company announced that CEO Muhtar Kent will step down effective May 1, and be replaced by current President and COO James Quincey. Kent will remain chairman of the board following the transition.
The change in leadership comes at a time of struggle for the company. Buffeted by a shift in consumer tastes toward healthier products, Coca-Cola has seen its revenue erode over the past three fiscal years, sliding from just over $48 billion in fiscal 2012, to $43.7 billion in 2015. Although the company has a broad portfolio of beverages, including healthier ones, the overwhelming majority of its sales come from its traditional soda lineup, anchored by its namesake drink.
Coca-Cola recently began a push to divest its manufacturing and distribution operations in the U.S. in favor of making Coke concentrate, an activity that is significantly more profitable. This represents an about-face for the company, which spent over $12.3 billion to buy the bottling plants of Coca-Cola Enterprises.
Kent has served as Coca-Cola’s CEO since 2008. Quincey, a native of the U.K., has worked at the company for 20 years in a variety of positions, including president of its Europe Group and its Mexico division. He was named COO in August 2015, a strong indication that he was being groomed for the top spot. In conjunction with his accession to the CEO position, Coca-Cola said that its board intends to nominate Quincey as a director at the company’s general shareholders’ meeting in April.
10 stocks we like better than Coca-Cola
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and Coca-Cola wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of Nov. 7, 2016
Eric Volkman has no position in any stocks mentioned.
{loadposition user99}