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Covid-19 operational problems (no labour mobility, no operational mobility)
In December 2020, the Coca-Cola Company said that it will lay off 2,200 employees, or 17% of its worldwide staff, as part of a bigger restructure aimed at consolidating its business units and brands. According to the Atlanta-based Corporation, around half of the layoffs will take place in the United States, where Coke employs approximately 10,400 workers. At the end of 2019 Coke recruited 86,200 workers globally. According to a Coke representative, the employment losses will lead in yearly savings of about $350 million and $550 million (BBC, 2020).
Moreover, Coca Cola Company is experiencing delays in shipment of ingredients to our partners of bottling as an outcome of transportation postponement, which was caused by extra security guidelines prescribed by shipping companies, shutdowns of ports
As a consequence of the COVID-19 pandemic's impact on their separate companies, several of our partners regarding bottling have experienced, and suffered periodic factory shutdown, production downturns, and transportation delays. Supply chain disruptions have put, and may continue to place, limits on their and their bottling partners' capacity to procure bottles and cans, which has grown, and may increase in the future.
Consumer awareness about health measure
Obesity-related health concerns are causing significant worries among customers, experts of public health and state officials. The following situations can negatively effect on the profitability: rising public worries about obesity, issues regarding consumption of drinks containing sugar-sweetened ingredient; tax increase on sugar-sweetened drinks imposed by the administration of the country in order to cut down the consumption and increase the profit; extra state rules regarding the packaging, advertising, labeling, marketing, and sale of Coca cola’s drinks.
The European Association of Soft Drinks Producers, UNESDA, recently revealed new health and nutrition objectives. According to these objectives, European Union countries and UK are going to decrease the average sweeteners in beverage by 10% during the period 2019-2025. The mentioned goal will lead to 33% decrease in sugar added in the drinks during the following two decades. New promises will need a variety of activities from beverage producers, including revising their formulas to lower amount of sugar, creating reduced calorie alternatives, and pushing smaller containers to encourage steady consumption (Abagnale, 2021).