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.

Fundraising

4 Trends In Fundraising That Will Impact the Future of Philanthropy

Increasing the success of your nonprofit requires you to adapt to changes.

Leadership

'Seeing People I Helped Succeed Is My Greatest Thrill': Baseball Star Dexter Fowler and Restaurateur Michael Tanha Outline a Playbook for Success

Retired World Series Champion Dexter Fowler and hospitality entrepreneur Michael Tanha discuss what drives their passion to succeed on the new episode of "The Playbook."

Business News

'The Market Is Hot': Here's How Much a Typical Meta Employee Makes in a Year

Data from federal filings offers a glimpse into base salary ranges at Meta for roles ranging from AI research scientist to data analyst.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Jack Dorsey Announces WhatsApp Competitor Called Bitchat

Twitter co-founder Jack Dorsey went on X to reveal a new messaging app called Bitchat that will not require internet connectivity.

Business News

OpenAI Executives Look For These 3 Key Traits in New Hires: 'It's Actually My Advice to Students'

These traits matter more than a Ph.D or formal schooling in AI, say the executives.