Coke's slow fix

The CEO of Coca-Cola (NYSE: KO) has decided that the only way to get his bottlers around the world to do a better job of making and selling Coke is to get in there and run them himself.

Coke has begun a program [subscription required] to buy local bottlers and change their management or load their boards with Coke allies. Although some Coke bottlers are independent, others are majority or minority owned by the big soft drink operation.

Coke's program has paid off. Operating profits from bottlers where Coke has a stake are up from $1.6 billion in 1999 to $4.1 billion last year. But, Coke thinks that there is more improvement on the horizon.

The company's plan to improve sales, marketing, and manufacturing is not unlike programs at fast food chains, auto companies, and retailers like Starbucks (NASDAQ: SBUX). Large local operations in important markets can be critical to the financial health of the parent. Coke is being more aggressive than most and it would appear that it's getting results.

Douglas A. McIntyre is a partner in 24/7 Wall St.