Coca-Cola announces cost-saving measures

Coca-Cola announces cost-saving measures

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.

Questions or comments? Please feel free to contact the editors


Gucci investigated for tax avoidance

04/12/2017

The Italian police raided Gucci’s offices in Milan and Florence, looking for evidence of tax avoidance. The fashion label admitted there was an investigation and that it is fully cooperating.

Quiksilver wants to acquire Billabong

01/12/2017

Surfing brand Quiksilver tabled a 150 million dollar (125 million euro) bid for its competitor, Billabong. It may be the latter’s only way out, with compounding losses in the past few years.

Benetton moves back to its roots

30/11/2017

Luciano Benetton, founder of the Italian fashion chain, will take back control at the age of 82. He wants to return his company to its former glory: “The decay is unbearable”, he announced in the La Repubblica paper.

Opinion: Why Delvaux needs Game of Thrones-inspired handbags

29/11/2017

Pop culture, fashion and luxury: they have gone hand in hand for ages, but their bond seems stronger than ever now. Why is Delvaux selling Game of Thrones handbags and how is Kim Kardashian helping the worldwide demand for luxury brands?

New CEO for Desigual's parent company

29/11/2017

Eurazeo, which owns fashion brands like Desigual and Moncler, appointed a new CEO. Starting 19 March 2018, Virginie Morgon will succeed Patrick Sayer. She has been part of the company’s board for ten years.

Brax takes control of Belgian clothing stores

28/11/2017

German Brax will take control of ten of its eighteen Belgian stores next year. Starting in 1995, the German clothing chain left management in the hands of fashion distributor ARW Retail.

Back to top