Three years after taking the reins of the Central Bottling Company (Coca Cola Israel) from his father, David Wertheim is instituting dramatic changes in company management. Sources said yesterday that company CEO Itzik Tamir was leaving his position after more than 30 years with the company.
The reports verified rumors circulating in the market a year ago that Tamir was leaving. Sources inform "Globes" that Tamir's resignation is only one part of what Wertheim is planning at the company, which entails replacing its entire management.
Wertheim took control of the company in 2013, after his father, Moshe Wertheim, decided to divide his inheritance when he was still alive, and designated his son as his heir. David Wertheim received 63% of the shares in the company, while his sister, Drorit, received 37%.
Since then, David Wertheim has been chairman of the beverages company, while Drorit has been a company director. Before obtaining control of the company, David Wertheim focused his efforts on real estate company Amot Investments Ltd. (TASE:AMOT), which he and Drorit indirectly control through Alony Hetz Property and Investments Ltd. (TASE: ALHE).
At the time David Wertheim's gaining control of Coca Cola Israel seemed to indicate the weakening of company president Ronnie Kobrovsky, Moshe Wertheim's partner of many years in building and developing the company in Israel, but this did not occur. Kobrovsky has a minority stake in Central Bottling Company mineral water subsidiary Neviot and in the group's overseas activity, mainly in Carlsberg Romania.
Central Bottling Company was founded in 1968. The group's subsidiaries include Coca Cola Israel, managed by Tal Raban; Neviot; Israel Beer Breweries (IBBL), managed by Harel Haikin, which includes Prigat; IBBL Spirits, managed by Asaf Ivanir, which deal with alcoholic beverages; and Tara Dairy, managed by Eran Elsner.
The Central Bottling Company has been expanding its business through acqusitions for many years. It acquired Tara Dairy, and through it the Gilead Dairy and Tzuriel Farm Dairy; Tabor Winery; Prigat; the Maskar food vending machines company; and other businesses. The company has a number of production facilities in Israel, and is one of Israel's leading employers with 4,700 workers.
"An all-encompassing earthquake"
For many years, the same people have been in senior management positions in the company and all its subsidiaries, and it has now been decided to make a thorough change in the entire management backbone. This amounts to a game of musical chairs, however; Wertheim is not expected to bring outside managers into the company.
The sources said that the candidate to replace Tamir is general manager sales Yoram Sagy. Tal Raban, the current general manager, is a candidate to replace Sagy as general manager of the sales division.
Another expected change is at Tara, where Elsner is expected to replace Shlomo Graziani as overseas business manager. Personnel changes will also be made in other senior positions.
A source close to the company said, "This means an all-encompassing earthquake that will not leave everyone satisfied. All the people who will move now are people who worked with Moshe Wertheim for many years, and played important roles. David has had a long time to sit and study the group. Many new fronts have been opened for the Central Bottling Company. It has a problem with Tara Dairy, and the market has changed."
Another source told "Globes," "There are many difficulties in the way of the changes, and there will naturally be executives who are negatively affected, and who will feel betrayed."
It is believed that Kobrovsky, whose professional standing is of the highest, will continue in his position. A source close to the company said, "Kobrovsky is an engine of vision, outstanding and groundbreaking thinking, and locating new markets. He's a businessman who has honestly done the maximum."
The Central Bottling Company declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016