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

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


James Quincey, CEO of The Coca-Cola Company, speaks during an interview with CNBC on the floor of the New York Stock Exchange, December 9, 2019.
Brendan McDermid | Reuters
Coca-Cola CEO James Quincey said Wednesday he expects to see sporadic shortages on grocery store shelves through 2022.
Like other food and beverage companies, Coke faces supply chain issues and higher commodity costs, which have resulted in some shortages.

“My analogy would be that it’s kind of like an earthquake,” Quincey said on CNBC’s “Squawk on the Street”. “You get other shock waves, but they tend to be of decreasing magnitude. “

He added that while the shortages could persist until next year, their importance will likely diminish over time as the situation improves.

Quincey said the company is using its global scale and long-term partnerships to address issues within its supply chain. However, not all challenges can be mitigated. He offered a second analogy, comparing supply chain headaches to a game of Whac-a-Mole.

“Some issues are permanent and structural, and some issues show up for one quarter and go away again,” he told CNBC’s Sara Eisen.

On a call with analysts, he listed issues such as labor shortages, skyrocketing gas costs in Europe and a plastics factory in Brazil that caught fire.

Coke shares rose 2% in morning trading after the company’s earnings and earnings exceeded Wall Street estimates and it raised its guidance for fiscal 2021.

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