A promotion can look attractive for one drinks brand and still create a problem for the company that owns it. A retailer may give the promoted drink space currently used by another brand in the portfolio. The brand president sees the extra sales. Someone with a view of the portfolio has to judge what the company gains overall.
That is a practical question for Celsius Holdings after its 5 November announcement. The company said it would organise into three business units built around Celsius, Alani Nu, and Rockstar Energy & Emerging Growth. It named Alex Zigliara president of Celsius and Rishi Daing president of Rockstar Energy & Emerging Growth, with a search for the Alani Nu president. The units will draw on shared sales, marketing, operations and administrative functions. Celsius announcement, Food Processing
Put the division of responsibility on a real decision
The Guru Management Codex provides a lens for examining decision ownership. WCRC would start with a product launch. The brand lead should be able to specify the customer, the role of the new drink and the result that would justify another production run. Shared operations should specify the capacity and inventory trade-offs. When two brands need the same retail window, a designated portfolio executive should be able to decide on the evidence and explain the cost to the brand that loses the slot. That is a proposed division of work. The release describes the structure without publishing its approval rules. Guru Management Codex
Distribution adds another layer. PepsiCo said it leads US distribution for the three brands, making it useful to separate decisions about what each brand wants to sell from decisions about how the portfolio reaches stores. A practical review would follow the first launches under the new structure and record where decisions were made, how long disagreements took to settle and whether promotions added sales across the portfolio. PepsiCo prepared remarks