Blog: Off the job
Chris Brook-Carter | 28 October 2003
The number three soft drinks producer Cadbury Schweppes is to undergo a four-year cost-cutting program that will eliminate about 10% of its 55,000 jobs worldwide and 20% of its 133 factories. This news was followed by the announcement from industry leader Coca-Cola Company today that it will increase the number of jobs it is cutting worldwide by nearly 50%, to 2,800, from a previously disclosed 1,900.
Cadbury’s cost cutting is meant to raise its operating profit margin and help generate about £1.5 billion (€2.15 billion) in free cash flow over the four-year period. The company says it plans to pour as much as one-third of the cost savings into product innovations and increased spending on marketing to drive net annual sales growth from the average 3% it has posted in recent years to a range between 3% and 5%.
Coke, meanwhile, said it had further reviewed all worldwide operations to improve its overall efficiency and effectiveness. Coca-Cola said it expects to derive at least US$50m in pretax cost savings this year and at least US$100m beginning next year.
Investors have welcomed the initiatives, but both are the product of the fiercely competitive environment at present in the sector. Cadbury has so far refused to give details of exactly how it will spend the money and until it does there will still be some caution as to whether it can meet these growth targets.
just-drinks is in Berlin this week for Bar Convent Berlin. Here's the second and final part of Andy Morton's blog, which will keep you up-to-date at one of Europe's most important dates in the alcohol...
just-drinks is in Berlin this week for Bar Convent Berlin. Here's the first part of Andy Morton's daily blog, which will keep you up-to-date at one of Europe's most important dates in the alcohol indu...
Responding to criticism on social media is tough. You've got to engage the consumer without starting an argument and - ideally - get them on side....
Want to know how The Coca-Cola Co-backed Keurig Kold - released in the US yesterday - works?...
- AB InBev, SABMiller - Here's what'll happen next
- Is time right for TWE to move for Diageo's wines?
- Is Brown-Forman at the end of the SoCo road?
- Will a sexed-up SABMiller tempt AB InBev?
- Making consumers the centre of your business
- AB InBev makes formal offer for SABMiller
- Diageo secures Xerox Corp CFO as finance head
- Tesco pulls several Carlsberg SKUs in UK
- Diageo makes US$780.5m beer deal with Heineken
- SABMiller formally rejects AB InBev's offer
- The IWSR Duty Free/Travel Retail Summary Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research