Get All Access for $5/mo

Coca-Cola Splits in Effort to Focus on Franchising Coca-Cola Co. announced yesterday that it is splitting its operations to expedite refranchising of its bottling system.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

Coca Cola Co. announced plans yesterday to restructure its North American business in an attempt to expedite its refranchising efforts and streamline its focus.

As of Jan. 1, 2014, the integrated North American business will be segmented into a traditional company and a bottler operating model. The company will consist of two operating units: Coca-Cola North America and Coca-Cola Refreshments.

"Now, we are in a position to leverage this flexibility to return to a traditional company and bottling operating model in North America, which will enhance our focus on execution and accelerate the refranchising of our bottling system in our flagship market," said Coca-Cola CEO Muhtar Kent in a statement.

Related: A Racist Sign at Sonic and 5 Other Franchise PR Disasters

Coke announced in April it would return to the franchise model in the U.S. In 2010, Coca-Cola paid $12.3 billion to buy its biggest U.S. bottler, securing control of production and distribution. By franchising the company, Coke can reduce costs associated with maintaining delivery trucks and warehouses, while retaining control over the bottling process.

Coca-Cola also announced that Americas chief Steve Cahillane is departing. Cahillane was once seen as the potential successor to CEO Kent. Now, Ahmet Bozer, the president of Coca-Cola International who will take control of the Latin America Group in the restructuring, is Kent's clear No. 2.

Related: Arby's Expensive Revamp: Two Logos in Two Years

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Buying / Investing in Business

What to Know About Selling Your Business

Selling your business can be both an exciting opportunity and a daunting process. This article will help you learn what you need to know before starting your sale process to ensure you get yourself on the right path to the desired outcome.

Business Solutions

Build Investor-Ready Pitches in Minutes with PitchBob

Your AI-powered co-pilot for startup success.

Real Estate

Why You Should Consider Commercial Real Estate as Your Next Investment

This article highlights the benefits of investing in commercial real estate while also addressing the associated risks you should consider.

Franchise

How to Create Franchise Videos That Inspire — And Convert Interest Into Action

The best franchise videos don't just inform, they connect emotionally. To capture those kinds of stories, you need to do more than just scripted interviews and staged office shots.

Growing a Business

'Good Isn't Enough': He Turned a Company on the Brink of Collapse Into a $100 Million Brand. Here Is His Best Advice for Giving Your Business a Second Chance.

Brad Charron, CEO and "Re-Founder" of ALOHA, explains the moves he made to help this plant-based protein company finally thrive.

Starting a Business

What You Need to Know to Buy the Right Business and Acquire Your Empire

Once you've decided to follow the road of entrepreneurship through acquisition (ETA), it's time to focus on what your destination should be and what supports can help you get there.