Biggest challenge to new CEO of Coca-Cola is to reduce calories

The next CEO of Coca-Cola will have the difficult task of bringing the company of 130 years to an era dominated by generation Y.
James Quincey, who will assume the post of CEO next year, is being pressed to drastically reduce the amount of calories in Coca-Cola products — a necessary measure because of the changes of consumer preference and the initiatives to combat obesity.
And he will not be able to depend on both the current crop of artificial sweeteners to do that, because many consumers turned their backs on the aspartame and other additives.
The 51-year-old Executive, who is currently Chief Operating Officer of Coca-Cola, also promised to modernize the marketing and distribution of the company at a time when more buyers search and buy products over the internet.
And the shares of Atlanta-based company were behind PepsiCo''s shares and the broader market this year.
"He''s going to get a health-oriented approach," said Jack Russo, an analyst at Edward Jones. He probably "will cause the main company do what she needs to do, i.e., new products, innovation — perhaps a better marketing."
U.s. consumers and other developed markets are running away from sugar and other artificial ingredients, obliging Coca-Cola to diversify their product offerings.
The company is depending on less of sodas and use healthier segments such as coffee ready to consume, plant-based protein drinks, cold pressed juices and dairy products.
As Director of operations, Quincey also fostered the adoption of smaller packaging for soft drinks — an initiative that has reduced the amount of calories per purchase and improved profit margins.
The company already is working on 200 reformulations in order to reduce the sugar content of its existing products. Fanta and Sprite with 30% less sugar are already on the shelves in the United Kingdom, and a new version of Coke Zero was released in various markets.
As they settle in the position of CEO, Quincey intends to intensify the development of new products.
"Smaller Packaging, less sugar, more variants, better marketing," he said at a news conference on Friday. "We''re going to adapt to changes in the landscape of consumption."
'' Realistic '' Look
While the current CEO, Muhtar Kent, is seen as a diligent brand driver, Quincey has a "look more realistic" about the problems of Coca-Cola, said Vivien Azer, an analyst at Cowen Co. &
He is "much more transparent in relation to obstacles that Coca-Cola faces — in terms of concerns relating to products, in particular with the sugar and aspartame," she said.
Calories have become a bigger problem for consumers these days, but the industry has been slow to make the drinks more skinny. The amount of calories ingested through drinks fell just 0,2% in 2015, according to a report published last month by the consulting firm Keybridge.