Coca-Cola announced on Wednesday that its Chief Operating Officer, Henrique Braun, will replace James Quincey as the CEO next year, as Coke and its competitors grapple with sluggish demand in soft drinks.
Coca-Cola said that the change will become effective on March 31, and Braun will be nominated to the company’s board of directors. Quincey will continue working in the company as the executive chairman of the board.
Therefore, Quincey has served as the head of the beverage giant since 2017. At that period, he managed the refranchising of Coke’s bottling system, the strategy of the company in the COVID pandemic, and its prioritization of drinks considered to be healthier.
Braun has been working at Coke in different positions since he joined the company in the year 1996, when Quincey joined. At the start of the year, Braun joined the company as a COO.
Coca-Cola announced in a release that Braun will concentrate on finding new growth prospects across the globe, more suitably satisfying consumers, and enhancing the technology of company.
The change in leadership occurs as the beverage company attempts to turn back the decline in the demand for its sodas, which continue to take a large portion of its global sales.
The case volume of Coke in its third-quarter global unit, excluding the impact of pricing and changes in foreign currency, improved by 1 percent in its third quarter following a decline in the same three-month period.
Quincy has stated that the low-income consumers purchased less of its drinks, and the company introduced the cheaper and smaller version of its products in an attempt to reverse the trend.
However, more expensive brands such as Smartwater and Fairlife have outperformed their soda segment in recent quarters, indicating that consumers are prepared to spend more on certain brands.
Coca-Cola has also been performing considerably better compared to its competitor, Pepsico, during the time of Quincey, partly because of its better out-of-home business in restaurants and movie theatres.
Coke is also winning in the soda wars. Its namesake soda has maintained its position as the largest-selling soda in the U.S., and Sprite overtook Pepsi to emerge as the No. 3 soda in the country.
Coke shares were unchanged in extended trading on Wednesday. The company’s shares have increased by close to 13 percent this year, as compared to Pepsi shares, which have dropped by more than 1 percent.
Coke has a market cap of more than $300 billion, which is better than that of Pepsi, which is approximately $200 billion in the market.
