HEALTH

Coronavirus could cause a Coca-Cola shortage

Feb 28, 2020, 6:46 AM | Updated: Mar 12, 2020, 9:10 am
A delivery truck driver unloads Coca-Cola Co. soft drinks in Lawrenceburg, Kentucky, U.S., on Monda...
A delivery truck driver unloads Coca-Cola Co. soft drinks in Lawrenceburg, Kentucky, U.S., on Monday, Feb. 10, 2020. Coca-Cola rose after reporting better-than-expected revenue growth for the fourth quarter, citing rising demand overseas and higher demand for its low-sugar offerings in the U.S. Photographer: Luke Sharrett/Bloomberg via Getty Images

(CNN) — Coca-Cola says coronavirus has disrupted its supply chain, and artificial sweeteners from China could be in shorter supply if the outbreak continues to spread.

Production and exports have been delayed for Coke’s suppliers of sugar alternatives used in the company’s diet and zero-sugar drinks, Coca-Cola disclosed Monday as part of its annual report.

“We have initiated contingency supply plans and do not foresee a short-term impact due to these delays,” Coca-Cola wrote in the filing. “However, we may see tighter supplies of some of these ingredients in the longer term should production or export operations in China deteriorate.”

The primary artificial sweeteners Coca-Cola uses in its products include aspartame, acesulfame potassium, sucralose, saccharin, cyclamate and steviol gylcosides. In its annual report, Coca-Cola indicated that it considered sucralose a “critical raw material” sourced from suppliers in the US and China. Splenda, a sucralose product used in Diet Coke with Splenda, is made in the US and not sourced from China.

The company did not specify which sweetener or sweeteners were affected by the supply and export delays. A spokesman for Coca-Cola declined to comment beyond its annual report.

On Friday, Coca-Cola issued a statement outlining the current and expected effects from COVID-19, the novel coronavirus. The company said it was taking precautionary steps with its employees in China to help prevent the virus’s spread.

“The safety and health of the company’s associates remains a high priority,” according to the statement. “The company has implemented precautionary measures to protect employees in China, which includes providing face masks and hand sanitizers; installing temperature screening in offices and manufacturing facilities; and setting up health monitoring mechanisms across the Coca-Cola system in China.”

Coca-Cola also is donating to organizations involved with helping patients and containing the virus. The amount of its donations was not disclosed.

The company estimated its case volume could decline 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. No references were made about any specific supply chain aspects, including ingredients.

China is Coca-Cola’s third-largest market for unit case volume.

Correction: This article was updated to reflect that Splenda, an alternative sweetener, is sourced from the United States.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Health

The Utah House has advanced the bill that bans transgender-related surgeries on minors and pauses t...
Lindsay Aerts

Utah House votes to pass transgender-related surgery ban

The Utah House has advanced the bill that bans transgender-related surgeries on minors and pauses the treatment of hormone blockers.
1 day ago
White carnations representing each of the 1,746 unborn babies that were aborted in Utah in 2022 are...
Allessandra Harris and Simone Seikaly

Speeches, silence, during Pro-Life Utah memorial at the Capitol

About 100 people including Utah lawmakers and religious leaders attended the memorial on Wednesday, Jan. 25, 2023.
1 day ago
 A mental health clinic will reopen on Thursday after a carbon monoxide leak sent at least 17 peop...
Michael Locklear

Carbon monoxide poisoning at central Utah clinic hospitalizes 17 people

The Central Utah Counseling Center in Ephraim was evacuated a week ago after a problem with an old furnace was discovered.
2 days ago
a row of guns are pictured...
Mark Jones

KSL at Night: How do we solve gun violence?

KSL at Night hosts Taylor Morgan and Maura Carabello speak with Clark Aposhian, chairman of the Utah Shooting Sports Council about gun violence.
3 days ago
Prescription opioid...
Nathaniel Meyersohn, CNN

Amazon launches $5-a-month unlimited prescription plan

Some of the generic drugs included in the program include Bupropion, Cephalexin, Doxycycline, Estradiol and Sertaline.
3 days ago
inversion and poor air quality in utah pictured...
Britt Johnson

Utah air quality has been good, but that may change soon

Utah air quality is due to get worse as a high-pressure system moves into the state and blocks any storms from coming in.
4 days ago

Sponsored Articles

Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy. This year the event will be held from January 27-29 at the Utah Bear Lake State Park Marina and Sunrise Resort and Event Center in Garden City, Utah. 
happy friends with sparklers at christmas dinner...
Macey's

15 Easy Christmas Dinner Ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy. Choose from the dishes we’ve highlighted to plan your meal or start brainstorming your own meal plan a couple of weeks before to make sure you have time to shop and prepare.
Spicy Homemade Loaded Taters Tots...
Macey's

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...
Sorenson

The Best Tools for Deaf and Hard-of-Hearing Workplace Success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Team supporters celebrating at a tailgate party...
Macey's

8 Delicious Tailgate Foods That Require Zero Prep Work

In a hurry? These 8 tailgate foods take zero prep work, so you can fuel up and get back to what matters most: getting hyped for your favorite
christmas decorations candles in glass jars with fir on a old wooden table...
Western Nut Company

12 Mason Jar Gift Ideas for the 12 Days of Christmas [with recipes!]

There are so many clever mason jar gift ideas to give something thoughtful to your neighbors or friends. Read our 12 ideas to make your own!
Coronavirus could cause a Coca-Cola shortage