Shares in beverage manufacturer and distributor Coca-Cola Amatil Ltd (ASX: CCL) have fallen almost 1% after the company announced a reorganisation of its Australian Beverages division.
Investors have had to remain patient with Coca-Cola Amatil over the last 12 months with shares having plunged 40% since last May. The company's profits have come under considerable pressure in that time, caused largely by a pricing war with primary rival Schweppes as well as pressures from supermarket heavyweights Woolworths Limited (ASX: WOW) and Coles, owned by Wesfarmers Ltd (ASX: WES). Further, Coca-Cola Amatil's struggling SPC Ardmona business was also a key reason behind its profit plunging a whopping 82.5% for the year.
Coca-Cola Amatil's new Group Managing Director, Alison Watkins, has undertaken a strategic review to guide the company through changing market conditions, helping it to become more competitive and cost-effective. As part of that review, the company will reorganise its Australian Beverages business which will see Barry O'Connell at the helm of the Australian non-alcoholic beverages unit.
Although its dramatic fall in share price is far from ideal for current or long-term shareholders, it does provide us with an incredible opportunity to buy shares at an incredibly discounted price (particularly with some experts suggesting the company could cut costs by up to $100 million).
