Visiting Arca’s Operations in Houston
Since acquiring the business in 2017, Arca Continental has been working hard to transform the culture of the Coca-Cola Southwest Operating Unit. Arca has made tremendous progress in this territory, which includes almost all of Texas and parts of Oklahoma, New Mexico, and Arkansas. Arca has shifted the organization’s overall focus and overhauled the incentive system to reward profitability over volume growth. Decision-makers are no longer looking just to sell more volume but are instead looking for the right offering mix to maximize profits. In addition to the shift in incentives, managers also have greater autonomy and accountability for the decisions they can influence and the costs they incur.
We spent a couple of days in August, 2019, with the local team in Houston to see these efforts in action. It is always a treat to be with Arca people. Whenever we have met with them all over the Americas, we have experienced the same focus, enthusiasm, mission, hunger, and hospitality. This cultural advantage is part of why Arca has been so successful across its territories. Before Arca arrived, Coca-Cola enjoyed an outstanding brand and connection with consumers in Texas. Arca is overlaying its operational best practices onto this market, and we are all benefiting as shareholders from this powerful combination.