Coca-Cola: Glaceau Unit to Run Powerade

By Harry R. Weber, AP Business Writer Coca-Cola: Recently Acquired Glaceau Water Unit Will Oversee Powerade Sports Drink ATLANTA (AP) -- The Coca-Cola Co., the world's largest beverage maker, is putting its sports drink brand and newly acquired enhanced water brands under the same management team.

An internal memo released by the Atlanta-based company Thursday said that, effective immediately, management of Coke's Powerade brand will be the responsibility of its Glaceau business unit.

Coca-Cola completed its $4.1 billion purchase of Glaceau, maker of Vitaminwater, earlier this month.

The memo from Sandy Douglas, the head of Coca-Cola's North America unit, said giving Glaceau management responsibility for Powerade will create a "singular management focus" that will allow both units to grow more rapidly.

"This will allow us to serve our customers and consumers more effectively while challenging our competitors more aggressively," Douglas said.

Douglas said the Glaceau team will work with Coke's still beverages business unit, as well as its customer and bottler teams, in developing strategies for Powerade while also exploring new opportunities.

He said the current members of the Powerade team will continue in their roles for the next several months to assist in the transition. They will be given the opportunity to join the Glaceau team in New York or seek other opportunities with Coca-Cola North America in Atlanta, Douglas said.

Coca-Cola's purchase of Glaceau, also known as Energy Brands, was Coke's largest acquisition ever.

Carbonated drink makers are trying to expand their product offerings to juice and other non-carbonated beverages to meet shifting consumer tastes.