The head of Cott Corp.’s U.S. unit has resigned amid a management shakeup to merge the company’s Canadian and U.S. businesses into North American in an effort to jumpstart sluggish sales.
The soft-drink company said Robert J. Flaherty, executive VP and president of Cott USA has resigned to pursue other interests. Flaherty, a former PepsiCo executive, was hired last December.
Two executives have been named to replace Flaherty. Mark Benadiba, the executive VP-Canada and International, will head North American operations and supply chain functions, including manufacturing, purchasing, logistics and quality. John Dennehy, VP-new business development for Cott USA, will lead North American sales and marketing. The two will report to president and CEO, John Sheppard.
Gil Arvizu, credited with successfully building Cott’s Mexican business, will return to the U.S, to head the U.S. sales organization, the company said.
“We committed to taking quick and decisive action,” said Frank E. Weise, chairman of the board, in a statement. “These steps are important in positioning us for increased profitability. With this structure, we will be a more efficient and effective organization with a critical focus on operations and sales.”
In addition to management changes, the company also plans to eliminate underperforming product lines to focus of bigger customers. The company said it would have pre-tax costs of up to $80 million over the next 12-18 months, including streamlining operations, severance and other costs.
The Toronto-based company announced two weeks ago that 2005 earnings would be substantially below forecasts. Its U.S. business makes up about 70% of sales. The company has had four consecutive quarterly profit declines and has seen its stock drop close to 30% in the last year.
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