Cahillane to run Coca-Cola's combined bottling operations in North America
The new leader of Coca-Cola's planned bottling operations in North America has worked for a California-based winery, started his own little brewery in Chicago, managed distribution of Coors beer, helped sell Belgian beers in Ireland and the United Kingdom and oversaw the bottling of Coca-Cola in Europe and North America.
Steven A. Cahillane, 44, will now have a more prominent perch from which to make and sell Coca-Cola. He will take over the combined North American bottling operations of Coca-Cola and mega-bottler Coca-Cola Enterprises when the merger is completed later this year.
Cahillane is currently president of the North American group of Coca-Cola Enterprises (CCE), the world's biggest bottler of Coca-Cola products.
Cahillane will assume responsibility for one of Coca-Cola's biggest strategic moves in decades: taking over the making and distributing of soda. Since 1986, most of that work in North America has been done by Coca-Cola Enterprises, which ran a giant network of plants, truck routes and salespeople.
Coca-Cola wants to combine that operation with its own beverage units, including its soda fountain, juice and water businesses, in a new division called Coca-Cola Refreshments. The streamlining is part of a plan to counteract a long-term decline in the North American soda market, which has been battered by a poor economy and concerns about the health effects of sugary drinks.
Coca-Cola reported Tuesday that sales volume in North America fell 2 percent and revenue dropped 6 percent in the first quarter.
On Tuesday, Muhtar Kent, Coca-Cola's chairman and chief executive officer of the Coca-Cola, said Cahillane was the right executive to lead the melding of two large operations in North America, to "get the structure right," as Kent put it.
"I’ve known him and tracked him through his career," Kent said in an interview. "I think he’s had a stellar, wonderful career in the beverage industry. I think he will focus maniacally on integration with speed, with precision. That is going to be his No. 1, No. 2, No. 3 priority."
Cahillane is well-liked within the Coca-Cola system. Friction several years ago between Coca-Cola and CCE apparently did not blunt his rise.
"Steve has strong leadership skills and personal qualities," said John Sicher, editor of Beverage Digest. "During some difficult times in the Coke system, he kept the respect and regard of not just his colleagues at CCE, but also his counterparts at Coke and other bottlers."
Sandy Douglas will continue as Coca-Cola's president of North America. Both Cahillane and Douglas will report directly to Kent.
Cahillane led Coca-Cola Enterprises' European group from October 2007 to July 2008 and has been in his current post in North America for about two years. Prior to joining Coca-Cola Enterprises, he was an executive with Belgian brewer InBev, the maker of Bass, Stella Artois and Hoegaarden.
In his current job with Coca-Cola Enterprises, Cahillane oversees a sprawling North American operation that includes 59 beverage production plants and 314 principal distribution facilities.
Cahillane began his career in the beverage industry as a sales representative for E&J Gallo Winery, serving in several sales positions before becoming general manager. In 1995, he started State Street Brewing Company in Chicago. He sold the business in 1997 and joined Coors Distribution Company as vice president and general manager. Two years later, he joined InBev in a U.S. sales job. He then worked for divisions of InBev in London and Brussels before joining Coca-Cola Enterprises and the world of soft drinks.
Cahillane earned a degree in political science from Northwestern University and an MBA from Harvard.
