Major overhaul at Coke

Coca-Cola Ltd., the Canadian subsidiary of Atlanta-based Coca-Cola Co., has announced a major restructuring involving 20 employee layoffs and 39 transfers.The restructuring, which involves the transfer of Coca-Cola Ltd.'s top marketing executive to Atlanta and the elimination of two director of...

Coca-Cola Ltd., the Canadian subsidiary of Atlanta-based Coca-Cola Co., has announced a major restructuring involving 20 employee layoffs and 39 transfers.

The restructuring, which involves the transfer of Coca-Cola Ltd.’s top marketing executive to Atlanta and the elimination of two director of marketing positions, appears to bring the Canadian firm’s marketing function more closely within the orbit of its u.s. parent’s.

A key element of the restructuring, which became effective May 12, is the transfer of Dave Sanderson, formerly vice-president of marketing for Coca-Cola Ltd., to Atlanta, where he becomes a director of marketing representing Canada in a global marketing committee.

Also represented in the global group are the u.s., Latin America, Asia, Eastern Europe and Western Europe.

Within Coca-Cola’s global reporting structure, Canada reports to the u.s. Other regions of the world report to an international department.

Sanderson says his new role ‘will be to offer input to the global marketing group,’ and to access Coca-Cola’s ‘worldwide capabilities’ for the benefit of the Canadian company.

Coca-Cola Ltd. has also terminated two of its three director of marketing positions.

Two of the directors of marketing, one of whom was responsible for Coke and Coke Classic, the other, Diet Coke and Sprite, have been let go.

The third, Chris Jordan, formerly director of marketing for corporate properties, has been named director of consumer marketing, responsible for all brands.

According to the firm, no changes have been made at the brand management level.

In addition to restructuring its marketing department, Coca-Cola Ltd. has transferred its sales and sales support functions to its bottling arm, Coca-Cola Beverages. Thirty-five Coca-Cola Ltd. employees will move to the bottler as part of the function transfer.

As well, Coca-Cola Ltd.’s finance function has been shifted to its subsidiary, Coca-Cola Foods, a move that will result in the transfer of four employees from the former firm to the latter.

Tony Eames, Coca-Cola Ltd. president and chief executive officer, remains at the top of the newly streamlined company, which has gone from 99 employees to 40.

Last year was a terrible year for Coca-Cola in Canada. Last month, Coca-Cola Beverages, which is 49% owned by Coca-Cola Ltd., reported a $45-million loss for the year.

According to A. C. Nielsen, Coca-Cola spent $26 million in advertising in Canada in 1992.

Sanderson says the restructuring will not affect Coca-Cola’s Canadian marketing budget. PA