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Blog post 2 / Milestone 3
In Welcome to the Forum
Will Breon
Apr 25, 2022
Tim, excellent job on your post for this Milestone 3 unit. I thought you did a great job being informative and insightful in regard to the Coca-Cola company’s growth in foreign and domestic markets. With the level of recent uncertainty regarding supply chain issues, inflation, unemployment, COVID-19, and global invasions, there is much to be of concern for all corporations and Coca-Cola has shown excellent leadership and positioning in combating these issues. CEO James Quincey said "there’s pressure built up for '22 that will necessitate some price increases. We intend to manage those intelligently, thinking through the way we use package sizes and really optimize the price points for consumers" (Doering, 2021). Coca-Cola’s saw revenue decrease around 4 billion, from $2019 to 2020 (Coca-Cola Company, 2021). In response to this, Coca-Cola cut dozens of brands, a move laying off over 2,200 workers, with the goal of “invest in growing brands like Minute Maid and Simply Juices and fund the launch of new products like Topo Chico Hard Seltzer, Coca-Cola Energy, and Aha sparkling water” (Durbin, 2020). The projected costs of the severance packages for employees as a result of this decision were around $350 million to $550 million, which is no minor commitment for Coca-Cola, highlighting their confidence in the direction of these newer products (Doering, 2020). References Coca-Cola Co. (2021, October 6). Coca-Cola Company statistics and Facts. Market.us. from https://market.us/statistics/food-and-beverage- companies/coca-cola-company/ Doering, C. (2021, May 04). As inflation rates, food and beverage manufacturers pass higher costs on to consumers. https://www.fooddive.com/news/as-inflation-rages-food-and-beverage-manufacturers- pass-higher-costs-on-to/599148/ Doering, C. (2020, August 28). Coca-Cola to offer buyouts to 4,000 employees, with layoffs to follow. Food Dive. from https://www.fooddive.com/news/coca-cola-to-offer-buyouts-to-4000-employees-with- layoffs-to-follow/584333/ Durbin, D.-ann. (2020, December 17). Coca-Cola laying off 2,200 workers as it pares brands. AP NEWS. from https://apnews.com/article/layoffs- james-quincey-coronavirus-pandemic-e3364940775d662b92f78fb97c8af5da
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