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Increases cases of coronavirus in Italy 2:44
San Francisco (CNN Business) - Coca-Cola says that the coronavirus has disrupted its supply chain, and that China's artificial sweeteners could be scarce more if the outbreak continues to spread.
Coca-Cola revealed Monday as part of its annual report that production and exports have been delayed for Coca-Cola suppliers of sugar alternatives used in the company's diet and sugar-free drinks.
"We have initiated contingency supply plans and do not anticipate a short-term impact due to these delays," Coca-Cola wrote in the presentation. "However, we could see a stricter supply of some of these ingredients in the long term if production or export operations in China deteriorate."
Increases cases of coronavirus in Italy 2:44The main artificial sweeteners that Coca-Cola uses in its products include aspartame, acesulfame potassium, sucralose, saccharin, cyclamate and steviol glycosides. In its annual report, Coca-Cola indicated that it considered sucralose, the sugar substitute best known as Splenda and used in products such as Powerade Zero and Diet Coke with Splenda, a “critical raw material” obtained from suppliers in the United States and China.
The company did not specify which sweetener or sweeteners were affected by delays in supply and export. A Coca-Cola spokesman declined to comment beyond its annual report.
This Friday, Coca-Cola issued a statement describing the current and expected effects of COVID-19, the new coronavirus. The company said it was taking preventive measures with its employees in China to help prevent the spread of the virus.
"The safety and health of the company's associates remains a high priority," according to the statement. “The company has implemented precautionary measures to protect employees in China, which include providing facial masks and hand sanitizers; install temperature controls in offices and manufacturing facilities; and establish health monitoring mechanisms throughout the Coca-Cola system in China. ”
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Coca-Cola is also donating to organizations involved in helping patients and containing the virus. The amount of your donations was not disclosed.
The company estimated that its volume of cases could decrease from 2 to 3 percentage points, organic income from 1 to 2 percentage points and earnings per share of the first quarter from 1 to 2 cents. No references were made on specific aspects of the supply chain, including ingredients.
China is the third largest Coca-Cola market by volume.
Coca-Colacoronavirus Shortage
