Cost-Cutting Coke May Shutter Landmarks

Brandweek,  Feb 21, 2000  by Theresa Howard,  Terry Lefton

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In a potent symbol of the breadth of Coca-Cola's ongoing assessment of every aspect of its operations, sources said the company is mulling the closing of its landmark Fifth Avenue retail store in New York and The World of Coca-Cola attraction and store in Las Vegas.

The company wouldn't comment, but a Cake exec indicated that the possible closings were under consideration as a way to help reach Coca-Cola's ambitious goal of trimming 20% of its global workforce. The two locations are among the biggest physical manifestations of the brand. The Vegas venue opened in 1997 and boasts the world's largest Coke bottle.

Even as Coke mulls shuttering the sites, it is believed to be eyeing an $18 million renovation of the World of Coca-Cola in Atlanta. A Coke source said any augmentation of activities there would add far less in overhead than would be eliminated by closing the other two sites, which employ 100 to 125.

As another sign of the expediency with which the reorganization has been proceeding under incoming chairman/CEO Doug Daft, the date of his formal ascension to those roles was accelerated by a vote of the Coke board to last week, not April as originally planned.

Unchanged are plans for newly elevated chief marketing officer Stephen Jones. Contrary to a Brandweek report (Feb. 14) that he may jump to Yahoo!, a rep said he would be staying at Coke. Jones himself last week issued an internal memo citing his commitment to the company.

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