Alex Cummings obligations of success: Alexander B. Cummings, president and chief operating officer, Africa Group, the Coca-Cola Company, talks to African Business Editor, Anver Versi.

Trying to interview Alex Cummings was a bit of an odyssey. The problem was finding a slot when we were both in the same place at the same time. As president and chief operating officer of the Africa Group of the Coca-Cola Company, his travel itinerary rivals that of an airline pilot.

When we eventually did meet, at the company's headquarters in historic Windsor, England, I was struck by his cool and calm demeanor, when I was expecting the sort of finger-snapping impatience you usually associate with extremely busy people.

Cummings was born in Liberia and split his early years between his home country and the US. Before joining Coke, he held several positions with the Pillsbury Company in the US. As a vice-president, he had financial responsibility for a growing $1.2bn international branded food business with operating companies in 16 countries.

Cummings joined Coke in 1997 as region manager for Nigeria. Three years later, he was appointed president of the company's North and West Africa division. In 2001, following a series of outstanding results, he became president of Coke's Africa Group.

Coca-Cola is arguably the world's most successful company; it is certainly the best known. It is the largest consumer goods provider in Africa and growing.

But Coke's preeminence should not be measured in numbers; it is legend. The early founders of the brand, going back to the 19th century, wanted the drink to be available everywhere on planet earth and, bar somewhere deep in the Amazonian rainforest, have succeeded.

In Africa, Coke has been part of everyday life as far back as memory can stretch. In some West African societies, certain rituals cannot be completed without Coke--hardly surprising when you consider that one of its main ingredients is the kola nut, a cultural icon in West Africa. In East Africa, wherever you found a dukka (small shop), no matter how remote the location, you found Coke. The word Coca became synonymous with any soft drink. The drink, with its peculiar, slightly tangy taste became one of the things you could depend on--a little ray of brightness in an otherwise dark day. The chunky bottles it used to come in were just as important. They were virtually unbreakable and were used for an astonishing variety of purposes, including holding up shelves.

I suggested to Cummings that he carried a heavy burden of responsibility, not only to grow the company but, perhaps more importantly, to maintain the good health of an African cultural icon.

He smiled quietly. "Yes of course. You and I know what Coke means in Africa. I never allow myself to forget that. It not only has to be available, it must be affordable."

Cummings recounted the decision to open a bottling plant in Somalia while the civil war was raging. It was such a profound gesture of confidence in the future that it made news around the world and the BBC even sent out a team to make a documentary.

"For many Somalis, Coke was more than just a product. It meant hope, a return to normality, a reconnection with the world and better times."

I asked him how the plant was faring. "Up and down," he replied. "It is difficult to get inputs and power supplies are erratic. But we never lose hope. We'll keep plugging away."

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Hit the jackpot

Whatever Coke's cultural status, it is still a business. It may have hit the jackpot with its unique formula (still a closely guarded secret) 130 years ago but it still has to evolve with the times. While the product itself has remained virtually the same, albeit with some modifications (see box), its packaging and marketing has to keep pace with current fads and fashions. It has to compete with a host of old and new rivals if it is to maintain its market leadership position.

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I wanted to know from Cummings how the company had maintained its premier position in so many geographical areas of the world over such a long time.

"Many factors are involved," he said, "but we pay close attention to first principles. One, we have a very strong brand portfolio of sparkling beverages such as Coke, Fanta, Sprite, Schweppes and still beverages such as 5Alive and Minute Maid.

"Second, we have a powerful distribution system through franchising which allows us to expand and extend the reach of our networks. We look to where it is not, rather than where it is. Lastly, our people. Today, as in the past, we have been able to employ some of the best talents available in all the geographic regions we operate in."

Cummings explained that the usual operational model involved the company identifying areas for expansion and also bottling partners. "We bring in our brands, our secret formula, our marketing expertise and create the demand. The bottlers, who are local people, produce and distribute the products."

In a few areas, Coke may take on the bottling functions itself, usually if a local firm cannot be identified and it may take equity in some bottling operations.

"But the guiding principle is that while we are multinational, we are local where we operate," says Cummings. "That is also part of our strength. Then there is the multiplier effect. For everyone we employ, 10 others are employed in related industries--making glass, cans, coolers and so on. These tend to be local people. Everybody along the value chain makes a buck--the basic tenet of private enterprise."

Fostering the enterprise culture is very much an integral part of Coke's strategy. This ranges from advice and training to bottlers and distributors and continues down to the humble vendors you find along the roadside.

"We help them understand inventory terms, provide them with credits in some cases, teach them how to use equipment, how to organise their distribution, where to locate outlets, the importance of serving the product cold--which is a big driver in sales--and so on. Quite a few have started from the bottom and gone on to run sizeable operations."

Lifeblood of marketing

Advertising is the lifeblood of Coke's marketing mix. Almost from its inception, the company has used highly original images and themes to provide unique branding for its products. Some of Coke's early posters are now highly sought after collectors' items changing hands for small fortunes.

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I asked Cummings how the company's advertising campaigns begin life.

"The global campaign directions come from our headquarters in Atlanta. Themes and associations, for example, linking Coke with sport or food or optimism, are worked out there and then we localise it," he explains. "Every geographic group has a marketing director. Local input in terms of cultural trends, languages, lifestyles, perceptions, sensitivities and consumption patterns is essential in shaping the advertising for TV, radio, the print media, billboards, point of sale material and so on."

Equally important is packaging and the graphics associated with them. "We are always on the prowl for new channels for sales--supermarkets, convenience stores, dukkas, kiosks, petrol stations, restaurants, cafes, bars, stadiums, events and so forth," says Cummings.

Coca-Cola has been in Africa for about 70 years--the first franchise was opened in Johannesburg in 1928. Today there are 160 manufacturing plants across the continent. Coke holds the number one position in the non-alcoholic beverages (excluding tea and coffee) segment and controls around 30% of the market. Last year the business grew by 6%--attributable to the improving economic climate in the continent. Cummings expects growth to be faster over the next few years if the continent's economy maintains its momentum.

Coca-Cola Africa is gearing itself for what will be Africa's biggest global event ever--the 2010 Fifa World Cup in South Africa. Cummings told me that the company, which is sponsoring the event, aims to hold a series of soccer leagues across the continent in the build-up to the championship. "We want the event to be the best ever staged," he promises.

I asked him to describe a typical working week. "I am on the road 70% of the time, in Africa, Europe and North America. I try to be home (in fashionable Knightsbridge, London) on Friday but it is not always possible. When I am on the road, I go physically to stores to look at displays, meet with bottling partners, customers, NGOs and governments. We are involved in a variety of projects--in education, water, enterprise. I sit on a few boards--for profit and not for profit.

"Sometimes I work at home but try to keep my weekends free. I like to read novels, watch movies and indulge in my eclectic taste in music which swings from jazz to African.

"I love walking and London is great for that. It provides me with exercise and time for reflection. In terms of religious beliefs, I will say I am blessed but I don't carry it on my sleeve--I don't take anything for granted."

I asked him who he admired the most. "Both my parents," was the uncompromising reply. "My father, now deceased, was the deputy minister of education in Liberia; then he became a reverend and had a church. He was a principled, disciplined man. My mother now lives in Texas, she left Liberia in 1981 after the coup. I also admire Nelson Mandela for his generosity of spirit--he transcended all the abuse he received during the apartheid era."

How does he feel about running the biggest company in Africa? "Those of us in Africa who find ourselves in these sorts of positions have an obligation to be successful."

History

The Coca-Cola story

Coca-Cola was originally invented in 1885 by John Pemberton as a patent medicine. It was called Pemberton's French Wine Coca. Later the same year, when alcohol prohibition laws were passed in parts of the US, Pemberton developed Coca-Cola, a carbonated, non-alcoholic version of French Wine Coca. The beverage was named Coca-Cola because originally the stimulant mixed in the beverage was coca leaves from South America. In addition, the drink was flavoured using kola nuts.

Coca-Cola was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the US at the time thanks to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured a myriad of diseases, including morphine addiction, dyspepsia, headache and impotence. The first sales were made at Jacob's Pharmacy in Atlanta, Georgia on 18 May, 1886. Pemberton ran the first advertisement for the beverage on 29 May the same year in the Atlanta Journal.

In 1887, Asa Griggs Candler acquired a stake in Pemberton's company and incorporated it as the Coca-Cola Company in 1888. While suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen. Meanwhile, his son Charley Pemberton began selling his own version of the product.

Following a period of confusion and claims and counter claims, Candler, who claimed to have bought the exclusive rights to the formula, incorporated another company, The Coca-Cola Company (the current corporation). Candler began marketing the product with great efficiency. By the time of its 50th anniversary, the drink had reached the status of a national icon for the US. It was soon to conquer the world.

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