EUROPE: Coca-Cola Enterprises awaits weather upturn as Q2 dampened
CCE is hoping for better weather
Coca-Cola Enterprises (CCE) has warned that bad weather in Europe over the next six weeks could sink its full-year forecasts.
During a presentation at the Deutsche Bank Global Consumer Conference in Paris yesterday (11 June), the group said that temperatures threatened to be lower than last year, the coldest, wettest summer in 100 years in Europe. “If we could just have some decent weather, I think we'd be in pretty good shape,” CEO & chairman John Brock said.
“The next six or seven weeks are going to be very important,” he added. “If we have some normal weather during these periods of time, I think we're going to be in an excellent position to talk about the balance of the year.”
Brock said that in the second half of May and beginning of June, it was colder than last year. “All of our expert calculations and predictions and projections said there was a 13% or less chance of this summer being worse,” he said. “Well, that's what's happened so far.”
An excise tax increase in France and a “dynamic competitive environment” in the UK added to Europe's “challenges”, Brock said. “Some of these factors have been unexpectedly persistent and have dampened our outlook for the current second quarter,” he said.
His comments follow a statement released yesterday warning of unexpected factors that are hampering CCE's second quarter.
Brock, meanwhile, refused to be drawn on whether CCE is interested in buying GlaxoSmithKline brands Lucozade and Ribena, which were put up for sale in April.
“There's going to be a number of people who will look at them very carefully,” he said. “They're outstanding brands.”
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