Coca-Cola sees annualized savings of $550M-$650M from productivity program

theflyonthewall.com

During the three and nine months ended September 27, the company recorded charges of $97M and $312M, respectively, related to its productivity and reinvestment program. The first component of this program is a global productivity initiative focused around four primary areas: global supply chain optimization; global marketing and innovation effectiveness; operating expense leverage and operational excellence; and data and information technology systems standardization. The second component of its productivity and reinvestment program involves an integration initiative in North America related to our acquisition of Coca-Cola Enterprises' former North America business. The company has identified incremental synergies in North America, primarily in the area of its North American product supply operations, which will enable the company to better serve customers and consumers. As a combined productivity and reinvestment program, the company anticipates generating annualized savings of $550M-$650M which will be phased in over time. Coke said it expects to begin fully realizing the annual benefits of these savings in 2015, the final year of the program.

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