By Justin Bachman
AP Business Writer
ATLANTA — Jack L. Stahl, Coca-Cola's president and chief operating officer, resigned yesterday as the beverage giant announced a reorganization of its management structure.
The change creates four business units — Americas, Asia, Europe/Africa and New Business Ventures — with the head of each reporting directly to Coke chairman and chief executive Douglas Daft.
The new structure eliminates the president position.
Stahl, 47, was not fired, Coke spokesman Rob Baskin said. Rather, Stahl decided it was time to pursue other career opportunities, considering the company well on its path to financial recovery after several tough years.
Baskin said he did not know if Stahl, who also served as chief operating officer, had been offered another position at Coke. The resignation is effective immediately.
"This new structure is what the Coca-Cola Co. needs for a new century,'' Daft said in a statement. "Jack Stahl and I held a lengthy discussion about the exciting potential of this new model.
"Jack concluded that, having helped the Coca-Cola Co. reset its agenda and priorities, he wanted to seek new leadership challenges elsewhere.'' Daft was traveling and not available for comment yesterday. Stahl also was not available.
The company named Jeffrey T. Dunn, currently the president of Coca-Cola North America, to serve as Americas chief. A.R.C. "Sandy'' Allan will continue as Asia head and Charles S. Frenette, the chief of Coke's Europe operation, will add Africa to his duties.
The company said it will shortly name a leader of its new division, New Business Ventures. The effort, which Daft has discussed in less formal terms since he became Coke's leader, is designed to promote a spirit of entrepreneurship and innovation throughout the company.
Each unit head will be given the title president.
Baskin said the company remains confident it will meet the sales and financial targets it has set for 2001 and that Stahl's departure was not related to the company's performance.
The change represents fewer areas of separate management, merging the previously separate Latin America division with Dunn's group. Africa Group President Donald Short is becoming head of a new joint venture Coke is beginning with Procter & Gamble.
The deal announced last month will create a $4 billion company that aims to use Coke's global distribution muscle to spur sales of Procter & Gamble's juices, which include Sunny Delight, and its snacks — particularly Pringles.
No employees will be laid off as part of the changes announced yesterday, Baskin said.
"The idea is to move key decision making closer to local markets,'' he said, which Daft has long pushed as a way to increase Coke's ability to quickly manage changes in its disparate markets.
Stahl, elected as Coke's president and COO in April, earned $2 million last year and was granted options to buy 500,000 Coke shares.
He began his Coke career in 1981 in the finance department, working in various positions including executive assistant to the chief financial officer. He served as president of Coca-Cola USA from 1994 to 1999.
The tough years that Coke has endured recently included a health scare and subsequent recall in Europe, a falling stock price and a racial discrimination suit, which the company settled last year for $192.5 million — the largest settlement ever in a racial discrimination case.
Stahl said in a company statement that he had enjoyed his tenure at Coke.
"Coca-Cola is and always will be a part of me,'' he said in a statement.
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