Coke Brings Back Former Executive As CEO

Wednesday, May 5th 2004, 11:28 am

By: News On 6

ATLANTA (AP) _ The Coca-Cola Co. ended months of speculation over its next chairman and chief executive by bringing in a retired official of one of its bottlers. E. Neville Isdell, 60, was named Tuesday to succeed Doug Daft, who announced in February that he would retire at the end of the year.

Isdell, an Irish citizen, retired from the Coke system in 2001 after 35 years.

``I in no way accept that the growth in Coca-Cola is in any way over,'' Isdell told reporters in a conference call. ``I believe that is the world's greatest brand and there is significant growth to be had with Coke.''

The company's board passed over No. 2 executive Steve Heyer. The decision leaves an uncertain future for Heyer, the company's chief operating officer and only internal candidate for the top job.

Donald Keough, a Coke director and leader of the company's CEO search committee, said Isdell was the best choice for the top job because of his deep knowledge of the company. He brushed off suggestions from some observers that Coke should have picked an outsider to restore confidence in the company, which included candidates from other companies for the first time in a search for a CEO.

``This is not a popularity contest,'' Keough said.

Efforts to reach Heyer through a Coke spokesman were not successful.

Isdell inherits a company that has posted strong results but has raised concerns among investors amid layoffs, key executive departures and federal investigations.

The Justice Department and Securities and Exchange Commission have been investigating fraud allegations involving the company's business practices for nearly a year. A grand jury is hearing from witnesses.

``The first thing I'm going to do is get my facts straight ... and make sure I know what the company's issues are,'' Isdell told reporters in a conference call.

The Atlanta-based company laid off 3,700 people last year.

One thing Isdell has going for him is the company's strong results. In the first quarter, Coke reported that its profit soared 35 percent from a year ago.

``He's coming into a company that's making headlines and is at a challenging time now,'' said Todd Stender, an analyst with Crowell, Weedon & Co. in Los Angeles. ``The company right now is doing well, but internationally there are some issues.''

But, Stender added, ``He's a seasoned Coke employee. Experience-wise, it has been a good pick for someone who has worked from the inside of Coke.''

Isdell said that in the short-term he doesn't plan any major changes with how Coke operates its global system. He also said he will work hard to expand the presence of trademark Coca-Cola in the United States.

Isdell joined the Coca-Cola system in Zambia. After holding positions of increasing responsibility in South Africa, Australia, and the Philippines, he was named president of the company's Central European Division, based in Germany, in 1985, where he restructured the German bottling system to 30 franchises from 106 in just over three years.

In 1995, he was named president of the Greater Europe Group comprising territories accounting for nearly one-third of the company's worldwide profits. Isdell left the company in 1998 to serve as chairman of Coca-Cola Beverages, a company that went public the same year.

In 2000, he negotiated a merger with Hellenic Bottling Company to form Coca-Cola HBC, at the time the world's second-largest Coca-Cola bottler, and became its chief executive. He left CCHBC at the end of 2001.

Isdell has served on the boards of directors of Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Femsa, and British Telecom, and remains a director of Scottish and Newcastle Breweries.

The transition to his new role is expected to take place by early summer. Daft will assist in that process.