Coca-Cola streamlines reporting structure for Costa Coffee and Dogadan tea
Credit: Costa Coffee
The Coca-Cola Company announced that Costa Coffee will report to the company’s Europe operating unit, effective 1 January 2025. Additionally, the Dogadan tea business will report into Costa’s retail business in Europe. These organisational changes are intended to streamline and simplify the current structure. There are no significant numbers of employment changes, as the vast majority of current roles will continue.
The Global Ventures group was established in 2019 primarily to oversee the company’s ownership of Costa, innocent and Dogadan, as well as the company’s investment in Monster Beverage Corp.
“As we look to our next chapter of growth, we have evaluated how to best set ourselves up for future success with these growth areas, and we believe now is the right time to have them work more directly with our operating units,” said Coca-Cola president and CFO John Murphy.
The following changes take effect 1 Jan 2025:
• Costa will remain a stand-alone business and will report to the Europe OU. Costa is based in London, and the majority of the company’s retail and Express outlets are located in the United Kingdom and elsewhere in Europe. Costa’s ready-to-drink businesses outside of Europe will report through local operating units.
• Dogadan, a Türkiye-based tea business that was founded in 1975 and in recent years has closely collaborated with the Costa business, will report into Costa’s retail business in Europe. Dogadan has been part of Coca-Cola since 2007.
• Innocent, a 25-year-old, London-based maker of juices and smoothies, will report to the Europe operating unit. Coca-Cola has had an ownership stake in innocent since 2009. Innocent drinks are sold across Europe.
• Oversight of Coca-Cola’s investment in Monster will move to Murphy, while the respective geographies will be responsible for the underlying operations results.
Global Ventures is currently a separate operating segment. Global Ventures will be sunset as part of the reorganization, and the company will issue financials for 2022 through 2024 to reflect the changes. The recast data will be available publicly in early 2025.
The Coca-Cola Company reported on 23 October that net revenues declined 1% to USD $11.9 billion, and organic revenues (non-GAAP) grew 9% for its fiscal 2024 third quarter. Operating margin, which includes items impacting comparability, was 21.2% versus 27.4% in the prior year, while comparable operating margin (non-GAAP) was 30.7% versus 29.7% in the prior year. Coffee declined 6%, primarily due to the performance of Costa® coffee in the United Kingdom. Tea grew 7%, driven by growth in Asia Pacific, Latin America and Europe, Middle East and Africa.
