Business

Coca-Cola CEO expects to see sporadic product shortages through 2022

James Quincey, the CEO of The Coca-Cola Firm, speaks throughout an interview with CNBC on the ground on the New York Inventory Change, December 9, 2019.

Brendan McDermid | Reuters

Coca-Cola CEO James Quincey mentioned Wednesday he expects to see sporadic shortages on grocery cabinets by means of 2022.

Like different meals and beverage corporations, Coke is coping with snarls within the provide chain and better commodity prices, which have resulted in some shortages.

“My analogy could be it is a bit like an earthquake,” Quincey mentioned on CNBC’s “Squawk on the Street.” “You get additional shock waves coming by means of, however they are typically of diminishing magnitude.”

He added that whereas shortages might persist by means of subsequent yr, they are going to possible lower in significance over time because the state of affairs improves.

Quincey mentioned the corporate makes use of its world scale and long-term partnerships to navigate points inside its provide chain. Nevertheless, it is not doable to mitigate all challenges. He offered a second analogy, evaluating the provision chain complications to a sport of Whac-a-Mole.

“Some points are ongoing and structural, and a few points seem for 1 / 4 and disappear once more,” he advised CNBC’s Sara Eisen.

On a name with analysts, he listed points like labor shortages, spiking gasoline prices in Europe and a plastic plant in Brazil that burst into flames.

Shares of Coke have been up 2% in morning buying and selling after the company’s earnings and revenue topped Wall Street’s estimates and it raised its forecast for fiscal 2021.

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