Ozarks Coca-Cola’s Rice hints at successor

Edwin “Cookie” Rice Jr. has no current plans to retire as CEO of Ozarks Coca-Cola/Dr Pepper Bottling Co., but his successor already appears to be on the books.

Speaking this morning during Springfield Business Journal’s 12 People You Need to Know live interview series, Rice said his daughter Sally Hargis recently was elected chairwoman by the company’s board of directors.

“They realized that while I still have most of the marbles I started with, I didn’t have them all,” he said to audience laughter. “That’s fine with me. I have a lot of sway over her.”

Rice hinted Hargis, the company’s vice president of corporate strategy, would succeed him as chief executive.

“There’s no plan because I’m still it. But I think she’s in the room,” he said when asked of his successor.

Rice, Hargis and others are leading a time of change for Ozarks Coca-Cola.

Late last year, Ozarks Coca-Cola grew its business by 60 percent through the purchase of new territories and distribution centers from Atlanta-based The Coca-Cola Co. (NYSE: KO). Rice said the company now sells roughly 10 million cases a year, up from 6 million prior to the transaction.

Early this year, the company announced the promotion of 15-year employee Bruce Long to president and chief operating officer. He succeeded John Schaefer, who retired after 15 years.

Coke change-up
Rice, 85, has served as CEO of the third-generation family-owned company since 1970. He’s worked full time at Ozarks Coca-Cola - started by his father Edwin Rice Sr. - since 1953 and led the company’s purchase of a nearby factory in the late 1980s to take on the Dr Pepper brand.

This morning, Rice spoke of the relationship between independent bottlers and The Coca-Cola Co. He referred to the structure as “dynamic tension.”

“There is a pie of revenue out there, and how we divide it up has the dynamic tension related to it,” he said.

When he started full time in 1953, Rice said there were over 500 independent bottlers. Now, there are roughly 65.

But he sees that number growing. The Coca-Cola Co. has been refranchising in recent years, which led to the recent territory purchase by Ozarks Coca-Cola. The corporation’s plan is referred to as the 21st Century Beverage Partnership Model.

“The Coca-Cola company is, in fact, a marketing company and a concentrate manufacturing company,” Rice said. “At one time, they took a direction of buying up as many bottlers as they could so they could control the distribution. As it turns out, it wasn’t really good for their model. They didn’t like all those ugly assets on the books - trucks and buildings and all that sort of stuff.

“They finally came to the correct decision, and that was to refranchise, go the opposite direction and turn it back over to independent operators.”

At Ozarks Coca-Cola, employees mix, blend, carbonate and bottle soda concentrate to sell in its territory.

Wal-Mart Stores Inc. (NYSE: WMT) makes up 40 percent of the company’s business, and Rice said Ozarks Coca-Cola is making greater efforts to work with convenience stores because of higher profit margins.

Rice said Ozarks Coca-Cola’s family roots translate to its customers.

“If you treat your employees like family, they will then treat your customers like family,” he said of Ozarks Coca-Cola’s more than 500 workers, noting a common “desire to win” among them.

The audience of over 100 gave Rice a standing ovation to close the breakfast event at Hilton Garden Inn.

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Below, view a CNBC special on Coca-Cola, featuring Rice starting at the 27:20 mark.