Dive Brief:
- Coca-Cola CEO Muhtar Kent will step down from his position effective May 1, 2017, amid a series of senior leadership changes, the company announced in a news release Friday.
- Coca-Cola president and COO James Quincey will succeed Kent as CEO, while Kent will stay on as board chairman.
- Quincey will stand for nomination to be elected by the board as a director at the 2017 Annual Shareowners Meeting in April 2017.
Dive Insight:
This succession announcement comes as no surprise. Experts expected Coca-Cola was grooming Quincey for an eventual CEO role when the company appointed the company veteran as president and COO in August 2015.
The exact timeline of the leadership shakeup may have been questionable. But after more than a year in his current executive leadership roles, Quincey is now prepared to assume the top job and guide Coca-Cola in what remains an uncertain future for soda companies.
Since his appointment, Quincey has overseen increased activity in Coca-Cola's Venturing and Emerging Brands unit, which manages investments and acquisitions of startups that could potentially secure Coca-Cola's soda-dominated portfolio. VEB has enabled Coca-Cola to extend its portfolio into other non-carbonated beverage segments, from cold-pressed juice to aloe water.
This trajectory is likely to continue — if not intensify — under Quincey's leadership. Diversification will be critical to the stability of Coca-Cola's portfolio as soda and sugary beverages continue to come under scrutiny from consumers and public health advocates. The fact that soda taxes passed in several more cities this past election cycle doesn't bode well for the segment.
Coca-Cola's shares posted a more than 1% increase in pre-market trading following the announcement Friday.