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Home / Business

Why coronavirus could cause a massive shortage of Coke Zero and Diet Coke

NZ Herald
27 Feb, 2020 01:09 AM2 mins to read

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Focus Live: PM Jacinda Ardern confirms travel ban on foreign nationals coming from China to continue for a further eight days

Some countries could soon see shortages of Coca-Cola products after the latest coronavirus outbreak has caused supply disruptions.

Coca-Cola has announced production and exports have been delayed for Coke's diet and zero-sugar drinks as artificial sweeteners from China are feared to be in short supply if the deadly outbreak continues to spread.

However, a Coca-Cola New Zealand spokesperson confirmed Kiwi customers would not be affected.

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In its annual report, Coca-Cola wrote: "We have initiated contingency supply plans and do not foresee a short-term impact due to these delays,' Coca-Cola wrote on Monday in its annual report.

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Coke's supply of sugar substitutes used for its diet and zero sugar soft drinks has been hit by supply disruptions. Photo / Getty Images
Coke's supply of sugar substitutes used for its diet and zero sugar soft drinks has been hit by supply disruptions. Photo / Getty Images

"However, we may see tighter supplies of some of these ingredients in the longer term should production or export operations in China deteriorate."

The company uses sweeteners that contain aspartame, acesulfame potassium, sucralose, saccharin, cyclamate and steviol glycosides.

It's not known which sweeteners are affected by the coronavirus.

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A Coca-Cola New Zealand spokesperson told the Herald: "We are confident in our supply chain as we have limited sourcing from China and there will not be any impact on Kiwi consumers."

"As matter of routine, we maintain business continuity plans throughout the world including maintaining alternative procurement sources in other regions of the world."

Coca-Cola's statement said the safety and health of its associates is a high priority.

"The company has implemented precautionary measures to protect employees in China, which includes providing face masks and hand sanitisers; installing temperature screening in offices and manufacturing facilities; and setting up health monitoring mechanisms across the Coca-Cola system in China," the statement read.

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Coronavirus: Trump plays down the threat in public, but in private he's worried

27 Feb 04:57 AM

Coca-Cola has predicted its case volume could go down by 2 to 3 percentage points, organic revenue by 1 to 2 percentage points, and first-quarter earnings-per-share by 1 to 2 cents.

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