Coca-Cola has seen declining volumes in North America and Europe

Coca-Cola has seen declining volumes in North America and Europe

The Coca-Cola Co has revealed it is targeting annual cost savings of US$3bn by 2019 as its looks to further streamline its business. 

Alongside its nine-month results today, the group said it is expanding its previously announced “productivity programme”. The company is re-organising its operating model to "speed decision making" to allow a greater focus on local markets, it said, without offering further detail. 

The soft drinks maker, which saw its Q3 profits slide 14%, will also now look to refranchise the “majority” of its North American bottling territories by the end of 2017. Previously the company was aiming for 2020. 

The company has suffered headwinds in the European and North American CSD markets. Today it said third-quarter volumes in Europe slipped 5% and in North America by 1%.  

Muhtar Kent, Coca-Cola Co's CEO, said "decisive action" was needed to maintain "long-term" value for shareholders. 

"We have taken a hard look at our progress to date and realise that while the strategies we laid out at the beginning of the year are on the right track, the scope and pace of our actions must increase,” he said.

Kent added: “We are streamlining our operations and further aligning our incentive plans to deliver against our growth objectives.

“While we expect the macroeconomic environment to remain challenging through 2015, we are confident in our ability to return to sustainable growth over the long term.”