Coca-Cola Co. has announced that it will split its North America business into two units as it aims to return to a traditional franchising model.The Atlanta-based beverage giant also announced changes in its top leadership.
The company said Thursday that effective Jan. 1, it have two new units — Coca-Cola North America and Coca-Cola Refreshments.
Coca-Cola announced earlier this year that it would revamp the company as it tries to deal with a decline in its soda business. Consumers have been drinking less of the fizzy drinks and are increasingly turning to other beverage options, posing a challenge for soda makers.
With the creation of the new business units, “we are in a position to leverage this flexibility to return to a traditional company and bottling operating model in North America,” said Muhtar Kent, Coca-Cola Co.’s chief executive.
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This “will enhance our focus on execution and accelerate the refranchising of our bottling system in our flagship market,” he said.