Coca-Cola CMO gets added responsibilities in ongoing company recast

The global CMO is The Coca-Cola Company, Manolo "Manuel" Arroyo, is set to get a new set of responsibilities as part of an organisational recast. As the firm looks to slow its losses from the ongoing pandemic, Coca Cola is reshaping its business around five categories and will have the leads of these units will report to Singapore-based Arroyo. 

According to a company statement, Coca-Cola will reorganise its business into five categories Coca-Cola, Sparkling Flavors, Hydration, Sports, Coffee and Tea, Nutrition, Juice, Milk and Plant and Emerging Categories. The maker of Fanta, Sprite and Minute Maid, revived its CMO role in 2019, with Arroyo's appointment. 

In its most recent quarter, the company's revenue dived 28% year-on-year to $7.2 billion, prompting the firm to take a hard look at its portfolio and announce plans to shutter Zombie brands. Worldwide, Coca-Cola has 400 brands and half of these are dormant, acconting for barely 2% of its overall revenue. 

“The changes in our operating model will shift our marketing to drive more growth and put execution closer to customers and consumers while prioritising a portfolio of strong brands and a disciplined innovation framework," chairman and CEO James Quincey said in a release. "As we implement these changes, we’re continuing to evolve our organisation, which will include significant changes in the structure of our workforce.”

As part of this restructure, Coca-Cola is also streamlining its operations into nine units from 17 previously, under four geographies. The company’s operating leaders will report to president and chief operating officer Brian Smith.

Under this reorganisation, Coca-Cola has also announced the creation of Platform Services, a business unit that will work in service of operating units, categories and functions to create efficiencies and deliver capabilities at scale across the globe. This will include data management, consumer analytics, digital commerce and social/digital hubs.

Platform Services will be led by senior vice president and chief information and integrated services officer Barry Simpson.

As part of the exercise, the company has also announced a voluntary separation package with 4,000 employees in the United States, Canada and Puerto Rico who have a most-recent hire date on or before Sept. 1, 2017. This program will be offered globally too. 

The company’s overall global severance programs are expected to incur expenses ranging from approximately $350 million to $550 million.