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Rumors Circulate that Gillette CEO May Leave for Coca-Cola

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By: TOM BRANNA

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Shares of Gillette Co. fell more than 4% on Monday amidst concerns that chairman and chief executive James Kilts, the key driver behind the turnaround at the world’s largest razor maker, will soon leave to take the top spot at Coca-Cola Co. “We believe Jim Kilts is the leading candidate to become chairman/CEO of Coke,” Bill Pecoriello, analyst at Morgan Stanley, said in a research note Monday.

Coca-Cola’s chairman and chief executive Doug Daft plans to retire at the end of 2004. Analysts who are familiar with the situation cited Mr. Kilts’ success at turning around global consumer products company Gillette and also Kilts’ connection with Warren Buffet. The influential billionaire investor and Coca-Cola board member helped bring Kilts to Gillette as a Gillette board member in 2001. At the time, Gillette was struggling with weak sales of its razors and Duracell batteries.

“He was able to increase financial discipline, improve the pace of new products, restore some stability in the battery area and improve growth,” Dan Popowics, analyst at Fifth Third Asset Management. However, Kilts does not have an obvious successor at Gillette, raising concern of what will happen to the company if he does leave.

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