Disappointing results in its third quarter have prompted soda manufacturer Coca-Cola to announce huge restructuring measures. Obesity concerns have slowed down the company's growth.
Save 2.5 billion
Coca-Cola's turnover dropped slightly in its third quarter, from 12 billion dollars to 11.98 billion dollars (9.41 billion euro). Analysts had expected slight growth however, to 12.1 billion dollars (9.5 billion euro).
Slower international growth and increasing worries surrounding artificial sugars and obesity have been highlighted as reasons for the decline. Shareholders have also blasted CEO Muhtar Kent for failing to react to the situation quickly enough. He has now announced a cost-cutting program, which should help save 3 billion dollars (nearly 2.5 billion euro) by 2019.
Sell factories faster
Coca-Cola will sell off the majority of its bottling plants to independent entrepreneurs at increased pace. As part of the new plan, these factories will be sold off by 2017, three years earlier than previously planned.
Nevertheless, Coca-Cola still managed a 2.1 billion dollar (1.7 billion euro) net profit, which is still 14 % lower than in 2013. North American sales volumes dropped 1 %, while the company managed to grow sales volumes 1 % elsewhere. Analysts had expected a worldwide 3.4 % volume growth however.