Coke moves to reverse sales slump

Coca-Cola Co. will refocus its attention on staunching a sales slump, as well as restructuring a profit-sharing arrangement with Coca-Cola Enterprises Inc., its chief executive said in an interview with the Wall Street Journal on Tuesday.

E. Neville Isdell, appointed Coke’s CEO in June, told the Journal he would shelve a proposal to rearrange the soft-drink maker’s profit-sharing arrangement with CCE.

According to the newspaper, the two companies have been negotiating a new agreement for how Coke charges CCE for beverage concentrate, but Isdell says a new agreement has yet to be reached.

Isdell also cautioned that it could be two years before results at the beverage giant show a meaningful upturn, the Journal said. One crucial step toward the turnaround will be improved marketing, and Isdell suggested that advertising for Coca-Cola will become more iconic without being too edgy.

In an interview with Reuters last week, Isdell said that bolstering Coke’s depleted management ranks would be a priority in his drive to reinvent the company.

Coca-Cola has been hurt by global economic weakness and other factors beyond its control, but industry observers say mediocre marketing and strategic gaffes are also to blame for the poor showing.

They note that PepsiCo Inc. and other rivals have gained ground on Coca-Cola in some markets.