Coca-Cola Tabs its Next CEO

There may only be one New Coke if we’re lucky. There is, however, a new Coca-Cola CEO, and that’s OK.

Starting March 31, current Coke COO Henrique Braun will take over the sodapop giant as CEO, the company said this week. His mission? Navigating a murky new era that threatens more hard times for soft drinks.

Sprite Makes Right

The good news for Braun? He’s taking over a Coke with a decided advantage in the Soda Wars. The company’s namesake soda remains America’s No. 1 soft drink, according to a market share report from trade publication Beverage Digest earlier this year, while Sprite has edged out Pepsi as America’s third-favorite soft drink (No. 2? Dr. Pepper). Meanwhile, the company’s global footprint allowed it to navigate this year’s trade war more easily than rivals. 

The bad news for Braun? The intra-soda wars are nothing compared to a larger War On Soda being waged by health- and cost-conscious consumers. The company has been fortifying defenses on both fronts:

• While consumers continue to shift to lower-sugar beverage options, Braun’s predecessor, James Quincey, spent his nine-year stint acquiring major non-soda brands such as sparkling water drink Topo Chico, protein milk brand Fairlife and sports drink Body Armor.
• Amid rising economic anxiety this year, Coca-Cola has also rolled out a line of smaller, cheaper versions of its products to cater to cost-conscious and lower-income consumers.

The company’s subtle transformation is starting to reveal itself: While global soda sales have been flat so far this year, Coca-Cola reported on its latest earnings call that its water, coffee, tea, and sports drink unit has achieved 3% growth.

Don’t Need Fixing: Like Braun, current CEO Quincey rose to the top job after long serving as Coke’s COO. And like Braun, Quincey entered the job at a time of softening sales and slowing momentum, ultimately securing the company’s industry-leading position while diversifying into growing markets. Those are footsteps in which Braun seems eager to follow, writing in a statement: “I will focus on continuing the momentum we’ve built with our system.” Forty years after the New Coke fiasco, everyone seems to have remembered the important lesson: Why fix what isn’t broken?