Coca-Cola Amatil in organisational restructure

Coca-Cola Amatil changes will mean the exit of its alcohol and coffee boss and more power for its beverages chief.

Coca-Cola Amatil CEO Alison Watkins Picture: Adam Yip

Coca-Cola Amatil has unveiled an organisational restructure it says will better align the geographical reach of its beverages business.

The shake up will also see the departure of its alcohol and coffee business boss Shane Richardson.

The moves hand more power to Coca-Cola Amatil’s Australian beverages chief Peter West, who joined the company last year from drinks group Lion. He will now gain leadership of the alcohol and coffee division, which has brands such as Grinders coffee as well as Beam Suntory and Molson Coors.

Coca-Cola Amatil said the changes would further integrate beverage categories across each country of operation.

The changes come as CC Amatil completes a two-year transition phase as it attempts to return to strong profit growth. It is targeting mid-single digit earnings per share growth from 2020.

CC Amatil chief executive Alison Watkins said all beverage categories would now be managed in line with geographic responsibilities.

The Australian-based alcohol and coffee portfolios will join the Australian beverages team under Mr West. Alcohol and coffee in New Zealand, Paradise Beverages in Fiji and Samoa, and the international alcohol sales team, will come under the leadership of Chris Litchfield. The coffee portfolio in Indonesia will be part of the Indonesian business under the leadership of Kadir Gunduz.

“These changes will deliver further synergies between the non-alcohol, alcohol and coffee categories, and build on the existing integration in parts of the business including shared operations and sales teams in Australia and the structure in New Zealand,” CC Amatil said.

The moves follow the divestment of CC Amatil’s only non-beverage business, food processor SPC, in June 2019.

“Our partnerships with Beam Suntory, Molson Coors International, Caffitaly and other brand partners, together with our Amatil-owned brands such as Grinders and Feral, put us in a strong position in the alcohol and coffee categories, and we expect that to continue,” Ms Watkins said.

“We’ve also worked closely with The Coca-Cola Company to implement the Australian accelerated growth plan, which sees our Australian beverages business positioned for growth from 2020.

“With the conclusion of our two-year transition phase at the end of 2019, now is the right time to further integrate these businesses and use this new model to drive further growth for Amatil and our brand partners.

“We will report on the alcohol and coffee segment for the 2019 financial year and we expect it to maintain its revenue and growth targets. This performance will continue to be driven by our customer and brand partner accountability combined with our world class spirits, beer and coffee capability,” Ms Watkins said

Mr Richardson, who has led the alcohol and coffee business since 2014, will now be leaving CC Amatil.

“Shane is a recognised leader in the beverages industry and has brought tremendous drive and energy over his almost six years with us. We owe him deep gratitude for his outstanding leadership of alcohol and coffee, and for his dedication to brand partners, customers, consumers and the portfolio,” Ms Watkins said.

Last month the soft drinks maker reported a net profit of $168.0 million, up 6.3 per cent on a year ago. However, earnings from continuing operations fell by 3.9 per cent to $173.3 million, which management said was in line with its expectations.