Coca-Cola CEO on the state of business amid the crisis, consumer trends and more Description video: James Quincey, chairman and CEO of the Coca-Cola Company, joins \”Squawk Box\” to discuss how the coronavirus pandemic has affected business around the world […]
Coca-Cola CEO on the state of business amid the crisis, consumer trends and more
James Quincey, chairman and CEO of the Coca-Cola Company, joins \”Squawk Box\” to discuss how the coronavirus pandemic has affected business around the world as well as global consumer trends, what the company expects post pandemic and more.\n\nCoca-Cola CEO James Quincey delivered a grim forecast for the global economy’s recovery from the impact of the coronavirus pandemic on Wednesday. \n\n“The economic impact of the lockdown is just starting to begin,” Quincey said on CNBC’s “Squawk Box.”\n\nIn the United States, more than 36 million Americans have applied for unemployment benefits since the coronavirus upended the economy. The Congressional Budget Office said Tuesday that it expects U.S. GDP to plunge 38% on an annualized basis in the second quarter. The International Monetary Fund is forecasting that the global economy will shrink by 3% this year.\n\nQuincey said that he expects a “U”- or “extended U”-shaped recovery rather than one shaped like a “V,” where the economy quickly snaps back to pre-crisis activity.\n\nWhile he said it was too early for Coke to gauge how consumer spending habits are changing as lockdowns lift, the company expects that consumers will be more strapped for cash. \n\n“We’re gonna have to recognize that coming after this virus crisis will be the economic impact and hangover of the lockdown, and there will be a much greater focus from the consumer on affordability or getting the prices lower,” he told CNBC’s Andrew Ross Sorkin.\n\nCoke is still seeing negative global volumes in May, although they have improved slightly after plunging 25% in April, according to Quincey. Roughly half of the company’s revenue comes from away-from-home channels, like restaurants, movie theaters and stadiums. In China, which began easing stay-at-home orders in April, demand in May has not yet recovered to pre-crisis levels. \n\nShares of Coke were up 1% in premarket trading. The stock, which has a market value of $191 billion, has fallen 19% so far in 2020.\n\nFor access to live and exclusive video from CNBC subscribe to CNBC PRO: \nhttps://cnb.cx/2JdMwO7 \n \n» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision\n» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC\n» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic\n \nTurn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.\n \nConnect with CNBC News Online\nGet the latest news: http://www.cnbc.com/\nFollow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC\nFollow CNBC News on Facebook: https://cnb.cx/LikeCNBC\nFollow CNBC News on Twitter: https://cnb.cx/FollowCNBC\nFollow CNBC News on Instagram: https://cnb.cx/InstagramCNBC\n \n#CNBC\n#CNBC TV
Coca-Cola Breaks Profit Records Amid Successful New Product Sales
Coca-Cola Co surpassed second-quarter earnings expectations and raised its revenue forecast with increased sales of zero-sugar sodas, new-flavored soft drinks and canned coffee.
The company’s shares are up nearly 6% during Tuesday morning trading. and reached an all-time high ($ 54.1).
The world’s largest beverage makers, Coca-Cola and rival PepsiCo (PEP.O), are responding to changing consumer tastes by going beyond traditional sodas to offer drinks with less sugar or new flavors and in pre-packaged packaging.
«Our results were driven largely by consumer demand for sugar-free versions of some of our well-known carbonated soft drinks brands, as well as more compact packaging.», – said CEO James Quincy.
PepsiCo’s results also beat analysts’ estimates, boosted by demand for small packs of traditional sodas.
As part of its plan to create «a complete beverage company» the company did not limit itself to soda and last year signed a deal to buy British Costa Coffee for $ 5 billion.
Coca-Cola is currently betting on its coffee innovations, express vending machines, beans and catering customer machines to boost sales.
It recently launched Costa Coffee, ready-to-drink in three flavors and Coca Coffee, a beverage that blends coffee and its soda brand name, in several markets..
Quincy said nearly 25% of the company’s revenue now comes from new or recycled products, up from 15% two years ago..
Coke Zero Sugar has double-digit sales growth in its third year, driven by smaller packaging and new flavors.
Organic revenues are now expected to grow 5% overall by 2019, up from its previous forecast of an increase of around 4%.