US: Coca-Cola's Glaceau unit to run Powerade

By just-drinks.com editorial team | 22 June 2007

The Coca-Cola Co. plans to put its sports drink brand and enhanced water brands under the same management.

The company said yesterday (21 June), that its Powerade brand will now be the responsibility of its Glaceau business unit.

Head of Coca-Cola North America, Sandy Douglas, said that the decision was based on wanting to give the company a "singular management focus" in an effort to grow more rapidly. Douglas added: "This will allow us to serve our customers and consumers more effectively while challenging our competitors more aggressively."

Staff from the Powerade team will continue in their roles during the transition, but will be offered the chance to join the Glaceau team in New York, or seek other opportunities with the company in Atlanta.

The soft drinks company, which bought Vitaminwater maker Glaceau for US$4.1bn, has recently seen its rating upped to 'buy' from 'hold' by Citigroup this week.

The broker said that, now, Coca-Cola is "addressing issues head-on" through acquisitions like Glaceau and FUZE Beverages, it has addressed many of the past concerns that we had identified and is moving toward achieving a more balanced portfolio."

Sectors: Soft drinks, Water

Companies: Coca-Cola Co