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

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

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

Brendan McDermid | Reuters

Coca-Cola CEO James Quincey stated Wednesday he expects to see sporadic shortages on grocery cabinets through 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 would be it’s a bit like an earthquake,” Quincey stated on CNBC’s “Squawk on the Street.” “You get further shock waves coming through, but they tend to be of diminishing magnitude.”

He added that whereas shortages could persist through subsequent yr, they may possible lower in significance over time because the state of affairs improves.

Quincey stated the corporate makes use of its international scale and long-term partnerships to navigate points inside its provide chain. However, it isn’t potential to mitigate all challenges. He introduced a second analogy, evaluating the availability chain complications to a sport of Whac-a-Mole.

“Some issues are ongoing and structural, and some issues appear for a quarter and disappear again,” he advised CNBC’s Sara Eisen.

On a name with analysts, he listed points like labor shortages, spiking fuel 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 corporate’s earnings and income topped Wall Street’s estimates and it raised its forecast for fiscal 2021.

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