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Knauss to satisfy Coke's thirst for new marketsDON KNAUSS
TRAVEL anywhere in Africa and the red Coca-Cola sign - the world's most recognised trademark logo - is in evidence, be it in the townships of Soweto or villages of Zambia. Not for Coke the cumbersome task of brand awareness on a continent otherwise starved of basic necessities. For the Atlanta-based softdrinks giant the challenges are a little different in Africa. "Our products account for only 5% of all liquid consumption in SA. Our strategy dictates we push it up to 10%," says the company's incoming president for the 10-country Southern African region, Don Knauss. It doesn't make it any easier that Coke is dominant in the region, particularly after last year's demise of the Pepsi Cola bottler, New Age Beverages. "Our competition is alternative sources of liquid refreshment, including water, but in the broader sense, other non-essential items competing for consumer spending, such as snacks, ice cream and even cigarettes or lottery tickets." The bottom line is that Knauss has to double the business over the next five years in line with Coke's Africa strategy released this month. "Africa is sacred ground for us as it has potentially the largest growth opportunities of any of our global markets. With SA as our springboard the upside in the continent is tremendous." An economic impact study, sponsored by Coke, shows the impact of the company and its bottling partners and distributors is significant - the company contributes an estimated R13.5-billion to SA's economy and hopes to boost this to R100-billion for sub-Saharan Africa within five years. Knauss's retail and management experience has been limited to the sophisticated north American market. His priority, therefore, is "to understand the emerging consumer and our business system's capabilities to serve them. We've got to increase the frequency of consumption." He continues to evolve the strategy which was developed last year when Coke invested R1.25-billion in infrastructure (coolers, equipment, training) particularly in the townships, informal settlements and high-density inner city areas. Knauss's first six weeks have been spent visiting Coke's extensive bottling network around southern Africa. Coke does not own bottlers but has a strong relationship with them "as we rely on them to ensure a volume-driven, consumer-focused marketing system". Knauss cautiously backs the current consolidation of the SA bottling industry with ABI buying Suncrush, and Kunene Brothers acquiring Suncrush's 20% in Kilimanjaro. Both deals are being scrutinised by the Competition Board. South Africa is rapidly becoming a good training ground for Coca-Cola's best talent. South Africans are running Coke's operations in Europe, Russia, Germany and Japan. Knauss's predecessor, Charlie Frenette, an American, has been appointed global chief marketing officer in Atlanta. Knauss fits the mould - a friendly, outgoing nature hides a steely determination. Throw in five years with the US Marines and there is little doubt he has a careful strategy which will be clinically implemented. His management experience is extensive. After leaving the US army he joined the world's largest retailer, Procter & Gamble, for four years, followed by a stint with softdrink group Tropicana. He spent nine years with snack food group Frito-Lay - where he rose through the ranks to become a vice-president - before joining Coke subsidiary Minute Maid in 1994. Before his Johannesburg appointment Knauss was senior vice-president, marketing, of Minute Maid's US operation. He joins the throngs of US executives that have made the Dainfern golf estate in northern Johannesburg, if not the largest, certainly the most influential US expatriate community in SA. He will be joined by his wife and four children. Sven Lunsche
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