Interview with Coca-Cola Zhang Jiantao: The epidemic does not affect the Chinese market layout and long-term commitment

Interview with Coca-Cola Zhang Jiantao: The epidemic does not affect the Chinese market layout and long-term commitment
“At present, most of Coca-Cola’s bottling plants have resumed work, and a small number of areas heavily affected by the epidemic have not yet been restored. It is expected that normal operations will resume in the near future.”” Recently, Zhang Jiantao, CXO and vice president of Coca-Cola China, South Korea and Mongolia, said in an exclusive interview with Sauna Night.Faced with the sudden outbreak since January, the survival and development of many physical enterprises are facing new changes.As a full-scale beverage company, Coca-Cola China’s production and operation have attracted much attention.Recently, Coca-Cola has announced the forecast of the impact of the epidemic on the performance of the first quarter of this year. It is currently estimated that in the first quarter, the impact of single box sales is about 2 to 3 substitutions, and the impact of organic revenue is 1 to 2 substitutions.The impact of initial earnings is 1 to 2 cents.Zhang Jiantao said to Sauna and Yewang that “we see that the response plan and related measures issued by the Chinese government have effectively released the market stability signal and boosted market confidence”. The epidemic does not affect the Chinese market layout and long-term commitment to the Chinese market.According to Zhang Jiantao, the Coca-Cola Company and its bottling system partners in strict compliance with local government regulations and guidelines have been approved by the local government, and measures to prevent epidemic prevention and control measures have been resumed; Coca-Cola is absolutelyMost bottling plants have resumed work.A small number of areas heavily affected by the epidemic have not yet been restored, and normal operations are expected to resume shortly.It is reported that in order to ensure the safety and health of employees while maintaining production and fresh supply, Coca-Cola has actively taken measures, including body temperature testing at the entrances of production and office areas, strict implementation of entry and exit registration, regular disinfection, and strengthening the protection of the entire production process.For non-frontline employees, Coca-Cola also adopts a flexible and diverse work style, encouraging employees to work from home while ensuring the completion of their jobs.Coca-Cola bottling plants around the country should also be prepared to take preventive measures and risk management plans, and initiate prevention and control rehearsals, and investigate and perfect possible situations; implement two shifts for production line employees, each shift is strictly disinfected and sterilized; full conclusionMeasures such as healthy punching, decentralized dining, and prevention and control of material releases ensure employees’ health and safety.”With the support of local governments, logistics and other issues have been resolved or alleviated accordingly, and operations have been guaranteed.In addition, the bottling plant has formulated a reasonable production plan. After resumption of work, there is no overlap between the required raw materials and the staff on duty.Regarding whether there are difficulties in resuming work, Zhang Jiantao said that Coca-Cola has formulated a business continuity plan and implemented these plans according to the actual situation in different regions.According to reports, as of March 1, the Coca-Cola China system has donated a total of 4.5 million yuan, and the Coca-Cola Foundation has gradually donated $ 500,000 in cash and $ 500,000 in medical supplies.In addition, through Coca-Cola China’s “Water Purification 24 Hours” action, a total of 1.26 million bottles of beverages have gradually spread.Coca-Cola Feed announced in its 2019 annual financial report that due to the epidemic, the supply of raw materials such as sweeteners produced in China was delayed.Fundamentally, Zhang Jiantao said that some of the raw materials needed for its products were sourced from China and other countries. “At present, our customers and consumers are not affected.In order to ensure that we can always meet the needs of consumers, we have developed a business continuity plan and a comprehensive procurement emergency plan to actively respond to any challenges that may arise in the supply chain. “Regarding the impact of the epidemic on performance, Zhang Jiantao said that Coca-Cola has announced the forecast of the impact of the epidemic on the performance of the first quarter of this year on a global scale.It is currently estimated that in the first quarter, the impact of single box sales is about 2 to 3 points, and the impact of organic revenue is 1 to 2 points, so the impact of revenue is 1 to 2 cents.The Coca-Cola Company maintained its 2020 performance guidance unchanged.The company will continue to monitor changes in the situation and will provide more information in the additional financial report meeting in April.The epidemic is currently spreading globally, especially in Japan, South Korea, Italy, Iran and other countries.Zhang Jiantao said that it is inconvenient to separately disclose specific information of each region. At present, for the health and safety of employees, Coca-Cola Company has suspended non-essential travel between Asia-Pacific and Italy, and cooperates closely with colleagues around the world through other means.Non-front-line employees in China, Singapore, South Korea, Japan, and parts of Italy have also adopted flexible and diverse ways of working. “To ensure that we can always meet the needs of consumers, we have developed business continuity plans worldwide.These plans will be implemented according to actual conditions. “During the epidemic, the retail industry experienced continuous consumer demand shifting from offline to online.Zhang Jiantao said that Coca-Cola’s sales and distribution personnel strictly implement the relevant epidemic prevention requirements, vehicle equipment is disinfected in a timely manner, and the route is adjusted according to road traffic; the sales personnel visit customers in a safe and orderly manner to ensure product supply; at the same time, the consumer-centered flexible adjustmentSupply methods, such as the use of community retail, takeaway cooperation, and on-line packages, will quickly deliver products to customers and consumers.“For example, Swire Coca-Cola recruited community partners to serve community consumers directly, and actively developed ultra-store O2O, catering O2O, chain catering packages, etc. for the rapid growth of community retail business; COFCO Coca-Cola also actively developed unmanned sales projects and carried outContactless products are sold, and e-commerce platforms are used to provide channels such as supermarkets, communities, and towns.”Xinhua Democracy Report, Curt Ferguson, President of Coca-Cola Greater China, South Korea and Mongolia, said at the New Year ‘s Annual Meeting of the China General Chamber of Commerce in January that he sought to establish closer ties with the Chinese market and is expected to be the current global single-box sales of Coca-ColaChina’s performance in the third market is expected to grow tenfold.”China has gradually become Coca-Cola’s third largest market in the world and is a very important strategic market for Coca-Cola.With the continuous improvement of localization, we are deeply rooted in China.We have full confidence in the development of the Chinese economy.Regarding the development plan for the Chinese market, Zhang Jiantao said that the stability and continued growth of the Chinese economy is an important driving force for the world economy and continued prosperity, and an important foundation for Coca-Cola’s internal companies to achieve performance in the Chinese market.Zhang Jiantao said that in China, 99% of Coca-Cola’s employees are local talents, and 98% of raw materials are purchased locally.With the upgrading of consumption and market segmentation, Chinese consumers are increasingly focusing on product quality and diversification.At present, Coca-Cola has transformed into a consumer-centric beverage company that provides consumers with 20 brands and more than 60 flavors in China.Among them, Coca-Cola invested 90 million US dollars in Shanghai in 2009 to establish a global innovation and technology center, which is the largest Coca-Cola R & D center outside the country, further strengthening Coca-Cola’s research and development capabilities in China.As a century-old beverage company that has entered the Chinese market since the 1920s, Coca-Cola also experienced SARS in 2003.According to Zhang Jiantao, under the guidance and support of the government, the Coca-Cola China system collaborated with partners to ensure the orderly development of the business under the rectification of the safety and health of employees. This also accumulated experience and confidence for Coca-Cola.”At this stage, China’s economic strength, material foundation and coping capabilities have increased.At the same time, Coca-Cola China’s overall system response capabilities, cooperation refinement and maturity have also greatly improved.We actively respond to the government’s “three guarantees” call to ensure quality, price and supply.We believe that under the leadership of the Chinese government and with the efforts of all sectors of society, China can quickly return to normal economic life and minimize the impact of the epidemic on the economy.Zhang Jiantao said.”Sauna, Ye Wang Zhu Yueyi Zhao Yibo Editor Wang Yu proofreading Chen Diyan