James Quincy, CEO of The Coca-Cola Company, speaks during an interview with CNBC in the hall on the New York Stock Exchange on December 9, 2019.
Brendan McDermid | Reuters
Coca-Cola CEO James Quincy said Wednesday that he expects sporadic shortages of products on shelves until 2022.
Like other food and beverage companies, Coke is facing supply chain challenges and rising commodity costs, leading to some shortages.
“My analogy is, it’s a bit like an earthquake,” Quincy said on CNBC’s Squeak on the Street. “You get new shockwaves, but they tend to diminish in strength.”
He added that while the deficit could persist over the next year, it is likely to narrow over time as the situation improves.
Quincy said the company is leveraging its global reach and long-term partnerships to address challenges in its supply chain. However, it is impossible to solve all the problems. He presented a second analogy, comparing a supply chain headache to playing a mole.
“Some problems are ongoing and structural, and some problems appear a quarter and then disappear again,” he told Sarah Eisen to CNBC.
During a conversation with analysts, he listed issues such as labor shortages, soaring gas prices in Europe, and a plastics plant in Brazil on fire.
Coke shares rose 2% in daytime trading after the company’s earnings and revenues beat Wall Street forecasts and the company raised its forecast for fiscal 2021.