Coca-Cola Amatil's Australian Beverages boss, Barry O'Connell, departs

Sue Mitchell
March 14, 2017
AFR

Coca-Cola Amatil is searching for a new head of its largest business, Australian Beverages, after the unexpected departure of managing director Barry O’Connell.

CCA said on Tuesday that Mr O’Connell, a 20-year veteran of the Coca-Cola system, was returning to Europe.

He joined CCA four years ago and had been running the Australian Beverages business since July 2014, when he took the helm from Warwick White.

“Over the last three years Barry has built a strong foundation for our Australian Beverages business through his leadership of our transformation program and focus on rebalancing our portfolio to deliver a sustainable business for tomorrow,” said CCA Group Managing Director Alison Watkins.

Peter McLoughlin, who is currently CCA’s HR director and is a former marketing director at Carlton and United Breweries, will temporarily step into the role while CCA conducts a full internal and external search for Mr O’Connell’s successor.

As reported on Monday, CCA’s Australian Beverages earnings have been falling since 2012 as consumers eschew carbonated soft drinks in favour of bottled water, low-sugar and functional beverages.

Volumes have been in decline since 2005 as higher consumption of bottled water and still beverages has failed to offset the slump in sales of fizzy drinks.

The rate of decline has accelerated in recent years, with volumes falling 2.1 per cent  in 2016, 4.1 per cent in 2014 and 3.2 per cent in 2013.

The launch of low-sugar Coke Life briefly boosted volumes in 2015.

In CCA’s sparkling beverages portfolio – which includes brands such as Coke, Sprite, Fanta and Kirks – volumes have fallen harder, down 4.7 per cent in 2016.

In response to the shift away from sugary drinks, CCA has been rebalancing its portfolio, changing formulations of  carbonated soft drinks to reduce calories and introducing new non-carbonated beverages such as Zico coconut water, Glaceau Vitaminwater and Fuze tea.

But progress has been slow. Sparkling beverages accounted for 67 per cent of CCA’s Australian drink volumes in 2016, down from 68.5 per cent in 2014, while still beverages accounted for 26 per cent of volumes, the same level as 2014.

Australian Beverages accounts for about 70 per cent of CCA’s sales and earning