Coca-Cola CEO: More diversification and healthy offerings
By CGTN’s Global Business
Beverage giant Coca-Cola continues its ambition to recycle and invest in R&D, CEO James Quincey said at Davos event about the company's latest efforts to diversify its products to meet consumer preferences.
Coca-Cola's packaging recycling programs echo around the world, and the company wants to help collect and recycle all the bottles and cans it sells by 2030. Quincey said Coke has a responsibility to help solve the world's packaging problem.
“We already have the technology to recycle bottles and make back the new ones,” he added.
As part of its diversification, the company acquired international coffee brand Costa from parent company Whitbread PLC last year. Quincey said Coca-Cola hopes to offer both ready-to-drink and Barista coffee and that full platform beverages are a big hope for Coke.
“We know consumers wish more choices," he told CGTN. "They want to drink Coke Classic but in smaller packages, so we are making a big push on smaller packages for Coke Classic. They still want to enjoy Coke but without sugar, so we invested in R&D for Coke Zero Sugar and the growing of dark coca nuts. But in the end, they want diversity, they want choices. So we invested in many categories including the latest one – Costa coffee.”
Quincey said China-U.S. trade tensions are not weighing on Coke since the brand strategy is localized – Cokes you drink in China are made in China, those you drink in the U.S. are made in the U.S. Still, he wishes the relationship between the two nations could be better, otherwise there will be losses for both.
“We have a very clear view that we think globalization in trade has certainly helped economic growth. So we are in favor of well-organized trade. Trade deals can be made better, even though our business is really local,” he said.
Quincey said that Coke, which owns the biggest R&D facility in Shanghai, has always had a good relationship operating in China. “One of our partners [in China] is a state company... I have to say we are always finding the way to expand and ride up opportunities in China. Focusing on how to get the economy to grow and what would drive more growth will be the biggest beneficial outcome for the entire economy,” he said.
Quincey sees fewer tailwinds in 2019 and no recession. “The world is volatile…we need focus on what we can manage. We can stabilize our consumers, work with them and create value for them. I think we will have good 2019,” he said in the interview.