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Coca-Cola names Quincey as next CEO, Kent stays as chairman

Coca-Cola CEO Muhtar Kent Will Step Down From That Role Next Year And Be Succeeded By The Company's Chief Operating Officer James Quincey, The Company Announced On Saturday.

PTI | Updated on: 10 Dec 2016, 10:06:49 AM
Coca-Cola company logo

New York:

Coca-Cola CEO Muhtar Kent will stepdown from that role next year and be succeeded by the company's Chief Operating Officer James Quincey, the company announced on Saturday.

Kent will continue as chairman of the company. Quincey will take over the world's largest beverage makerat a time when more people are drinking less sugary soda, including its flagship Coke.

Quincey, who's worked at the beverage maker for about two decades, has led the company's drive to cut down sugar in its drinks and said that he'll continue to do that as CEO.

He also said he'll push for more low-calorie beverages and to sell more soda in smaller cans and bottles.
The Atlanta-based company has been diversifying itsdrinks to try to adapt to changing tastes.

Last year it rolled out a milk drink called Fairlife nationwide that it said hadmore protein and less sugar than regular milk. Despite the changes, annual revenue has fallen in the past four years and Wall Street analysts expect revenue for the current year tofall about 5 percent from the year before.

In October, the Atlanta company said its third-quarterprofit fell 28 percent. Quincey will become CEO on May 1. The 51-year-old wasnamed president and chief operation officer last year. Kent,64, will continue as chairman of the board after he steps downas CEO. He has been CEO for more than eight years and first joined the company nearly 40 years ago.

Wall Street analysts said they had expected Quincey to be promoted to the top job, but some thought it would be announced early next year.
Analysts at Stifel said "job one" for Quincey is to improve revenue growth.

Billionaire investor Warren Buffett, whose holding company Berkshire Hathaway Inc is Coca-Cola's largest shareholder, said he was pleased with the succession plans.

"I know James and like him," Buffett said in a statement,"and believe the company has made a smart investment in its future with his selection."

Shares of The Coca-Cola Co rose USD 1.12, or 2.7 percent,to USD 42.10 in midday trading on Saturday. 

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First Published : 10 Dec 2016, 09:56:00 AM