Coca-Cola Amatil Ltd (ASX: CCL) (CCA) today announced a management shake up with the coming departure of its chief financial officer and the managing director of its tinned fruit business SPC Ardmona. The stock is off 1.72% to $9.14 on the news.
Despite having no replacements lined up as yet Coca-Cola's current chief executive, Alison Watkins, concluded the announcement with some chutzpah saying: "CCA is always conscious of the importance of succession planning…I am confident that we will announce successors for both roles in the near future".
The chief executive has only been in the role a short time herself and the real world lack of planning is further evidence of a business in transition as it attempts to put the recent past behind it.
The fizzy drinks business faces several problems including competitive pressures, margin squeezes and a struggling Indonesian business.
Despite this CCA remains a solid stock backed up by brand strength, mild competitive advantages and plenty of cost-cutting opportunities. The new management's challenge is to make the right moves in implementing a strategy more suited to the company's core appeal to consumers.
The group's recent struggles look fully reflected in the share price and provided management delivers it looks likely to provide decent long-term returns from here.
