News

The Coca-Cola Co eyes COVID-19 rebound with pledge to keep staff

Most popular

Why COVID-19 has restored plastic's popularity

Brown-Forman Performance Trends 2016-2020 - data

Remy Cointreau Performance Trends 2016-2020

COVID-19 a double-edged sword for CBD

How drinks companies can trump the water fountain

MORE

The Coca-Cola Co has no plans to lay off staff, according to CEO James Quincey, despite warning that the world is "still at the beginning of the beginning" of the coronavirus outbreak.

Coca-Cola CEO James Quincey is hoping for a V-shaped recovery

Coca-Cola CEO James Quincey is hoping for a V-shaped recovery

Speaking to CNBC News yesterday, Quincey said Coca-Cola has "absolutely not" launched any job restructures or has plans to do so. The CEO said his company will use economic levers other than job cuts in a bid to emerge stronger after the outbreak subsides.

"We want to keep our skilled employees because we believe there will be a rebound," Quincey said, adding that the company is "hoping for a 'V-shape' recover but preparing for a 'U-shape'". A V-shaped recovery would mean a faster return to normal conditions compared to a U-shaped bounceback.

"We're still at the beginning of the beginning," he said. "It's worth remembering that Coca-Cola has emerged stronger from every crisis it has faced. We're adapting."

Quincey warned that the business world is heading for a "profound" economic shock in the second quarter of the year as countries implement lockdown measures and the away-from-home channel suffers. He said US sales in grocery and e-commerce have seen "explosive growth" across all categories but that the off-premise will not offset losses in away-from-home.

"If there is a hard lockdown, the at-home is not going to compensate in the short term for the away-from-home," he said. "That's the challenge - that we supply the at-home while there is pressure on away."

Quincey added that Coca-Cola will stop supplying smaller packaging sizes to US retail as grocery volumes surge. Meanwhile, he warned that the supply chain "is creaking around the world" because of changes in channel mix and border delays.

Coronavirus COVID-19 and the global drinks industry - just-drinks timeline


Expert Analysis

Carbonated Soft Drinks Global Group of Eight (G8) Industry Guide_2017

Carbonated Soft Drinks Global Group of Eight (G8) Industry Guide_2017

Carbonated Soft Drinks Global Group of Eight (G8) Industry Guide_2017...

VIEW REPORT

Related Content

The Coca-Cola Co reassures market over coronavirus repercussions

The Coca-Cola Co reassures market over coronavirus repercussions...

Coronavirus COVID-19 and the global drinks industry - just-drinks timeline - FREE TO ACCESS

Coronavirus COVID-19 and the global drinks industry - just-drinks timeline - FREE TO ACCESS...

The Coca-Cola Co Q1 2020 - preview

The Coca-Cola Co Q1 2020 - preview...

The Coca-Cola Co Q1 2020 - April volumes plunge 25% - results data

The Coca-Cola Co Q1 2020 - April volumes plunge 25% - results data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?