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


James Quincey is the Chief Executive Officer of The Coca-Cola Company. He spoke to CNBC during an interview on the New York Stock Exchange floor, December 9, 2019.

Brendan McDermid | Reuters

Coca-ColaJames Quincey CEO, stated Wednesday that there will be sporadic shortfalls in grocery stores through 2022.

As with other beverage and food companies, Coke has been dealing with supply chain snarls and high commodity prices, leading to some shortages.

Quincey stated that “it’s somewhat like an earthquake” in his analogy on CNBC. “Squawk on the Street.”Although you get more shock waves through the system, they are usually of decreasing magnitude.”

He stated that, while there may be shortages for the remainder of next year’s fiscal year, these will probably decrease in importance as the economic situation improves.

Quincey explained that Quincey’s company relies on its international scale and long-term alliances to manage issues in its supply chains. It’s impossible to solve all problems. Another analogy he used was to compare supply chain headaches and a game called Whac-a-Mole.

CNBC’s he said, “Some problems are ongoing and structure. Some issues appear for one quarter and then disappear again.” Sara Eisen

On a conference call, he outlined issues such as labour shortages and high European spiking gasoline costs. He also mentioned a Brazil plastic plant that burst into flames.

After morning trading, shares of Coke rose 2% the company’s earnings and revenue topped Wall Street’s estimates andIt raised its fiscal 2020 forecast.