Muhtar Kent stepped up to the CEO position at Atlanta-based Coca-Cola Co. in July, just as the U.S. financial crisis was widening.

Kent’s ascent to the top, though, had been in the works for more than a year. He was named president and chief operating officer, the No. 2 post, in late 2006.

Kent, 55, began his career at Coca-Cola in 1978. He spent much of his career in Coca-Cola’s international operations. From 1999 to 2005, he also was president and CEO of the Efes Beverage Group, the majority shareholder of Turkish bottler Coca-Cola Icecek, before returning to Coca-Cola.

In an interview last week with the AJC, Kent talked about the issues facing Coca-Cola and its bottlers. Here are edited excerpts from the interview:

Q: You became CEO just a few months ago, but you’ve faced economic downturns before in your career in Turkey, Russia and Latin America. What did you learn from those experiences that you’ll apply now that you’re CEO?

A: Firstly, the bad news passes with great speed. And if you’re not ready, every day taking action, you’ll be left behind on the platform. Things change with great rapidity. As this crisis came with rapidity, we’ll come out of it with great rapidity.

The second lesson is never stop communicating with the consumer. The third lesson is to do things that would have otherwise been difficult to do in a non-crisis environment. It’s an alibi to get cultural changes.

The fourth thing I’ve learned is that you can do a lot with your cash. We are a cash business. We generate with our bottler billions of dollars in cash every year. In a crisis, cash is king. We need to leverage that fantastic thing that we have called cash.

Q: How does an economic downturn affect Coca-Cola and its products?

A: We haven’t had experience, global experience, that would suggest that in downturns, when people feel worse about their future, that they will necessarily shift from one (beverage) category to another. We haven’t seen a trend.

But they will shift their behavior in how they consume, when they consume, in what container they consume. They will eat out less. They will be out spending money less. They will spend more time at home.

Therefore, they will consume more packages and beverages at home as a percent of the total beverages they consume versus in normal times.

Q: So will Coca-Cola place a greater emphasis on take-home sales at grocery stores and supermarkets?

A: I wouldn’t call it more emphasis, but we will offer more choices to the consumer for home. More value, more choice, but also while we offer the choice that will mean that we will try also to enhance our margins as that choice gets into the mix.

Q: Can you give an example of how that will change your product mix? What could consumers see at the grocery store?

A: So once we didn’t have a 1-liter (bottle) as a home package. We will now offer a 1-liter, which is also a much more profitable package.

Q: How is that better for the consumer?

A: For each meal occasion, they will open a 1-liter, as opposed to having a 2-liter for two days. And that will mean they have a better product.

If you don’t consume (the 2-liter) all at once in a family occasion, it may not taste as good as when you open a new 1 liter.

Q: In its third-quarter earnings release, Coca-Cola Enterprises, Coke’s largest bottler, disclosed it would be charged higher concentrate prices by Coca-Cola. The move came after CCE raised the prices it charges consumers. Analysts suggested Coke and CCE were at odds. Is there a difference of opinion about how to address the U.S. market?

A: I think difference of opinion is what may be a little bit of a misnomer in the way people understand or interpret what was said in the earnings call of CCE. I think obviously we are cognizant of challenges our bottling partners are facing in the market in the United States with an increased cost environment that was unique to this year. …We are also cognizant of the fact that affordability is a very key component of the health of our brands. We need to continue to work towards being affordable.

Q: Was the concentrate price increase by Coca-Cola out-of-step?

A: It was not out of place. In the entire continent of Latin America, that’s how pricing works. Every time the bottler raises prices, Coca-Cola Co. raises prices. That’s how it works with Hellenic (a Greek bottler that serves much of Europe). It’s an incidence mechanism. …

We had not agreed on a price increase (with CCE), but the price increase was taken because of the high-cost environment. When the plan was made (for 2008), it was not foreseen the cost environment was going to be this high.

Therefore, I think it’s very clear that it was not out of step. CCE decided to take an unforeseen price increase. Coca-Cola Co. decided to basically follow.

Q: Are Coca-Cola and CCE on the same page for 2009?

A: We and CCE are totally aligned in the way we are working towards our ‘09 plans. …With the addition of Steve Cahillane to the team of CCE (as head of CCE’s North American Group), I think he and his team are working very closely with Sandy Douglas (head of Coca-Cola North America) and his team on all levels of the organization.

Q: PepsiCo recently announced it would launch a new marketing campaign to reinvigorate carbonated soft-drink, or sparkling, beverages. How does that affect Coca-Cola?

A: We’ve been talking about the need for growing sparkling for three years. So I’m really happy that there’s going to be renewed interest in the category. I welcome it.