Restructuring Plan for DCCBC in 2021

 
The year 2020 was difficult in many ways.  While we have been resilient, some realities are starting to surface.  We ended the year down in volume, revenue and margin by about 2% each versus prior year.  In Durham by itself, we were down in those same categories by over 5%.

It is my belief that much of 2021 will continue to be problematic.  January started with even worse numbers.  COVID19 cases continue to rise.  Our product supply constraints have continued into 2021 as well.  Our small store and Food Service/On Premise (FSOP) business continues to struggle with losses ranging from 40 to 60% with no clear end in sight. 

It is because of these headwinds that I have decided, with the support of our board of directors, to restructure the company.  This plan will involve a reduction in workforce starting today and continuing over the next few weeks.  The reductions will take many forms.  There are some employees who have scheduled their retirement in 2021 and whose positions will not be refilled.  There are certain jobs that will be eliminated, and those employees will be able to fill other open positions within the company.  Some employees will be offered a severance package as their employment will end.  A portion of our Human Resources function will be outsourced to ADP (Initially, please reach out to your manager if you need direction on HR matters).  As roles change, some jobs have been expanded creating new reporting relationships.

Please join me in congratulating Wayne Andrews as he will assume the expanded Role of Chief Operating Officer of Durham Coca-Cola and Sanford Coca-Cola.  Arnold Lea is simultaneously announcing his retirement date of April 30, 2021 and will help Wayne with the transition to COO in the interim.  Please join me in thanking Arnold for his dedicated service to the company in various roles over the past 38+ years. Others with title changes and expanded reporting relationships include Fred Anderson as VP of Operations, Ileana Taglis as Sales Analyst/Account Director and Greg Yow as SCC Operations Director.

Prior to this communication being transmitted, those employees who are affected by this plan have been notified.  If you have not been called to address your job position, you will continue to perform your duties as you have in the past, with the understanding you may be asked to modify your duties to help fill voids from others leaving.  We will do our best not to overburden any job position.

Thank you for all you do for the company.  I am confident this plan will stabilize us in these turbulent times and allow for growth in the future.  Please reach out to me with any questions you may have – cell: (919) 810-0704.

Hager