12 Jan 2017 Top beverage bosses to bid farewell in 2017
The CEOs of two iconic global beverage companies are stepping down this year: both Starbucks and Coca-Cola will be bidding their bosses farewell but not good-bye.
In December last year, one week after Howard Schultz shocked the beverage industry with the announcement that he will relinquish his title of CEO of Starbucks, Coke chief Muhtar Kent (above right) announced that he will step down this year.
Kent will step down from his role as CEO on May 1, 2017. He will hand his title to James Quincey (above left), who currently serves as the company’s president and chief operating officer. Kent will retain his title as chairman of the board.
“It has been the most wonderful and unique privilege to serve as chairman and CEO of our great company over the past eight years,” Kent said.
He went on to say that managing the company requires a “thoughtful and orderly” succession plan, and his announcement not only ensures that orderly process but puts in place someone who is prepared to lead the $180-billion beverage giant.
“Having worked closely with James during the past 10 years of his 20-year career with our company, I know that his vast industry knowledge, expertise with our brands, values and system, coupled with an acute understanding of evolving consumer tastes, make him the ideal candidate to effectively lead our company and bottling system. James has the strategic vision and inspirational leadership to usher in the next phase of growth for our great business,” Kent said.
Kent first joined Coca-Cola in 1978; by 1985, he was the general manager of Coca-Cola Turkey and Central Asia. He left Coke in 1999 for a six-year run as president and CEO of the Turkey-based Efes Beverage Group, but returned to Coke in 2005 as president and COO of its North Asia, Eurasia and Middle East group. He became Coke CEO in April of 2009.
As CEO, Kent has helped Coke look beyond the world of soda. Last year, he shepherded the company’s $2-billion investment in energy-drink maker Monster Beverage (the deal was announced in 2014 and closed in June 2015) and also oversaw its minority stake in Suja Juice, a cold-pressed organic juice company that has been named to FORBES’ Most Promising Companies list and whose co-founder has appeared on the 30 Under 30 in food and drink.
As president and COO, Quincey is already responsible for helping Coke to respond to changing consumer tastes; he’s credited with recent changes — including smaller package sizes and 200 initiatives to reduce added sugar….
Forbes: Read more here
It’s the end of (another) era for Starbucks
Howard Schultz, a self-made billionaire and Starbucks’ longtime chairman and CEO, announced that he is stepping away from his role as chief executive — for the second time in 16 years.
Schultz will give up his CEO title and become executive chairman on April 3, 2017. Schultz has said that he will focus on developing and expanding Starbucks Reserve Roasteries, a new strategic initiative for the coffee giant.
Schultz, 63 (above right), will cede the CEO role to Kevin Johnson (above left), the company’s president and chief operating officer. And he’s attempted to make his next step perfectly clear. “I’m not leaving the company. I’m here every single day,” he said.
“I consider it a privilege to work side-by-side with Howard, our world-class board of directors, and a very talented leadership team,” soon-to-be CEO Johnson said.
“Together, we will reaffirm our leadership in all things coffee, enhance the partner experience and exceed the expectations of our customers and shareholders. We believe in using our scale for good and having positive social impact in the communities we serve around the world.”
This is not the first time Schultz has stepped away from being chief executive at Starbucks. After taking over in 1987 he steered the company through its 1992 IPO and for years afterward, before giving up the job on April 6, 2000.
At the time, he said he was vacating the role in order to focus on the company’s global strategy. He took back the reins on January 8, 2008.
Schultz first joined Starbucks as director of operations and marketing in 1982, when the company had just four stores (it now has more than 25,000).
After falling in love with Italian coffeehouses during a 1983 trip to Italy, Schultz left Starbucks to start Il Giornale, his own line of coffeehouses. But he couldn’t stay away from the Seattle-based coffee chain for long: in 1987, he returned, buying the company and becoming its CEO.
Since those early days, Schultz has grown the company into an $85 billion powerhouse, expanding into tea (Teavana), offering hot food, and becoming one of the food industry’s pioneers in mobile ordering.
Simultaneously, Schultz has spoken openly about balancing profit and benevolence, and over the years launched a number of socially-just initiatives for his employees…..