1 00:00:00,080 --> 00:00:02,719 Speaker 1: Let's get straight to It's fantastically catch up with James Quincte, 2 00:00:02,800 --> 00:00:06,120 Speaker 1: the chairman and CEO of Coca Cola classing. James, thank you, 3 00:00:06,240 --> 00:00:08,200 Speaker 1: it's going to see you again. Just fantastical catch up. 4 00:00:08,480 --> 00:00:10,879 Speaker 1: We gave away the first question before the commercial break. 5 00:00:10,920 --> 00:00:11,959 Speaker 1: I don't know if you heard it or not, if 6 00:00:11,960 --> 00:00:15,480 Speaker 1: you didn't laughing, but here comes the question. All right, 7 00:00:15,720 --> 00:00:16,640 Speaker 1: at least I wants to know this. 8 00:00:16,800 --> 00:00:17,000 Speaker 2: Not me. 9 00:00:17,120 --> 00:00:18,040 Speaker 3: I'm not interested at all. 10 00:00:19,000 --> 00:00:22,680 Speaker 1: The biggest competitor, biggest competitor right now, is it Pepsi 11 00:00:22,960 --> 00:00:25,440 Speaker 1: or is it Novo Nordisk Ah, No. 12 00:00:25,600 --> 00:00:30,400 Speaker 3: Definitely Pepsi. Actually, the beverage industry depends on where you 13 00:00:30,440 --> 00:00:33,040 Speaker 3: are in the world. Because we're Soul global, we actually 14 00:00:33,040 --> 00:00:36,960 Speaker 3: face a number of semi kind of multinational and regional 15 00:00:37,000 --> 00:00:40,680 Speaker 3: competitors around the world. I think the drugs is something 16 00:00:40,720 --> 00:00:45,040 Speaker 3: that certain segments of the financial community got super focused 17 00:00:45,040 --> 00:00:47,400 Speaker 3: on the GLP ones, But when you actually break down 18 00:00:47,440 --> 00:00:50,760 Speaker 3: the data, I don't think it's a big it's a 19 00:00:50,760 --> 00:00:53,040 Speaker 3: big thing for us, and the end of the day, 20 00:00:53,200 --> 00:00:55,320 Speaker 3: if you want to make it super simple, you know, 21 00:00:55,360 --> 00:00:57,840 Speaker 3: we sell a whole range of beverages with from calories 22 00:00:57,840 --> 00:00:59,800 Speaker 3: to zero calories and the end of the day, you 23 00:00:59,840 --> 00:01:02,320 Speaker 3: can have let you could eat less calories. If you 24 00:01:02,320 --> 00:01:04,240 Speaker 3: want to lose weight, you can't have less liquid. 25 00:01:04,440 --> 00:01:06,800 Speaker 1: Let's talk about the product extent, whether that changes. We 26 00:01:06,920 --> 00:01:09,640 Speaker 1: know the starts about forty percent of Americans for abase. 27 00:01:10,240 --> 00:01:12,880 Speaker 1: If these GP one drugs really really kick on, If 28 00:01:12,920 --> 00:01:15,760 Speaker 1: this is like the big solution to a monster problem 29 00:01:15,880 --> 00:01:17,640 Speaker 1: in the United States of America, do you have to 30 00:01:17,720 --> 00:01:19,880 Speaker 1: change the product miss the things start to shift at 31 00:01:19,920 --> 00:01:21,199 Speaker 1: Coca Cola. 32 00:01:20,760 --> 00:01:23,080 Speaker 3: Well, the product mixer has been shifting over time already 33 00:01:23,120 --> 00:01:25,000 Speaker 3: as people have tried to balance out the calories with 34 00:01:25,080 --> 00:01:28,120 Speaker 3: the drinks they love. The zero calories have just continued 35 00:01:28,160 --> 00:01:30,880 Speaker 3: to grow steadily over the last couple of decades. So 36 00:01:31,080 --> 00:01:33,920 Speaker 3: I think it'll just be another piece of the puzzle. 37 00:01:33,920 --> 00:01:36,640 Speaker 3: As calories come under control, we'll see more zero gods. 38 00:01:36,760 --> 00:01:38,319 Speaker 3: But at the end of the day, people will still 39 00:01:38,440 --> 00:01:41,360 Speaker 3: enjoy an original coke every now and again. That's not 40 00:01:41,400 --> 00:01:41,720 Speaker 3: going to go. 41 00:01:41,920 --> 00:01:44,280 Speaker 2: I am curious, So who is your main competitor? 42 00:01:44,920 --> 00:01:47,360 Speaker 3: Who is our main competit? Actually we find we face 43 00:01:47,360 --> 00:01:48,080 Speaker 3: a range compit. 44 00:01:48,880 --> 00:01:51,280 Speaker 2: Yeah, which is number one person? You wake up every 45 00:01:51,320 --> 00:01:53,120 Speaker 2: morning and you look and try to see what is 46 00:01:53,160 --> 00:01:53,840 Speaker 2: that guy doing. 47 00:01:54,160 --> 00:01:55,840 Speaker 3: No, that's not how I wake up in the morning. 48 00:01:55,960 --> 00:01:57,960 Speaker 3: How do you wake up in the morning. Because if 49 00:01:58,000 --> 00:02:01,400 Speaker 3: I just chase my competitors don't do something new, I've 50 00:02:01,400 --> 00:02:04,480 Speaker 3: got to chase my consumers. I need to think about 51 00:02:04,520 --> 00:02:07,320 Speaker 3: what the competitors are up to. They're very creative and 52 00:02:07,320 --> 00:02:09,840 Speaker 3: there's some very talented people, But in the end, I'm 53 00:02:09,840 --> 00:02:12,480 Speaker 3: trying to satisfy the consumer. And so if I focus 54 00:02:12,520 --> 00:02:15,760 Speaker 3: on the person who's drinking the drink, what would really 55 00:02:15,800 --> 00:02:19,000 Speaker 3: make them happy, what would make the retailer happy, then 56 00:02:19,040 --> 00:02:20,640 Speaker 3: I will outpace the competitors. 57 00:02:20,720 --> 00:02:23,880 Speaker 2: So how much are consumers willing to pay for caffeinated 58 00:02:23,919 --> 00:02:26,280 Speaker 2: artisanal water? I mean, at a certain point, are you 59 00:02:26,360 --> 00:02:27,840 Speaker 2: seeing that you're able to charge? 60 00:02:27,840 --> 00:02:30,200 Speaker 3: With everyone just wondering, you. 61 00:02:30,160 --> 00:02:33,040 Speaker 2: Know, whatever it is that's popular for consumers and different segments, 62 00:02:33,040 --> 00:02:36,000 Speaker 2: But I'm wondering, do you see your pricing power so 63 00:02:36,160 --> 00:02:38,640 Speaker 2: much stronger now than before the pandemic. 64 00:02:40,080 --> 00:02:43,280 Speaker 3: Our focus has always been to earn our pricing. We 65 00:02:43,360 --> 00:02:47,320 Speaker 3: don't think about pricing as a markup versus the commodity price. 66 00:02:47,360 --> 00:02:50,200 Speaker 3: So it's about earning the pricing, whether that's the marketing, 67 00:02:50,240 --> 00:02:54,920 Speaker 3: the innovation, different package sizes, different formulas, different products. It's 68 00:02:55,000 --> 00:02:59,000 Speaker 3: really about earning the pricing, because pricing is a catastrophe 69 00:02:59,080 --> 00:02:59,720 Speaker 3: about to happen. 70 00:03:00,040 --> 00:03:03,239 Speaker 1: Back in October, you raised around, look, despite challenges in China, 71 00:03:03,720 --> 00:03:06,079 Speaker 1: the tail winds back then proving to be more durable, 72 00:03:06,320 --> 00:03:07,679 Speaker 1: and are the headwinds done its fate. 73 00:03:08,840 --> 00:03:11,400 Speaker 3: Look, we're in the closed period ahead of earnings, so 74 00:03:11,480 --> 00:03:15,400 Speaker 3: no comments on just a sneak peak. Yeah, just look. 75 00:03:16,200 --> 00:03:18,639 Speaker 3: One thing I tried to say last year was there 76 00:03:18,680 --> 00:03:21,840 Speaker 3: are always going to be headwinds. Sometimes they're economics, sometimes 77 00:03:21,880 --> 00:03:23,799 Speaker 3: there was sometimes in the case of the last few 78 00:03:23,840 --> 00:03:26,760 Speaker 3: years pandemic. One of the things we have underline is 79 00:03:26,760 --> 00:03:29,200 Speaker 3: we have on all weathers strategy. Things are going to happen, 80 00:03:29,200 --> 00:03:31,120 Speaker 3: They're going to be headwinds. There were headwinds in twenty three, 81 00:03:31,160 --> 00:03:33,000 Speaker 3: there were headwinds in the US. Wuld something will be 82 00:03:32,960 --> 00:03:35,800 Speaker 3: ahead wind in this year. But we are focused on 83 00:03:35,840 --> 00:03:37,800 Speaker 3: that all the way, the strategy to see it through, 84 00:03:38,120 --> 00:03:41,080 Speaker 3: to manage through it and deliver for the consumers, all 85 00:03:41,120 --> 00:03:42,160 Speaker 3: the way through to the shareholders. 86 00:03:42,200 --> 00:03:44,240 Speaker 1: I understand you can't speak specifically, ton so I went 87 00:03:44,280 --> 00:03:46,200 Speaker 1: for its too hard. I do want to know about China, 88 00:03:46,200 --> 00:03:47,480 Speaker 1: though it's been really hard to get a read on 89 00:03:47,480 --> 00:03:49,640 Speaker 1: what's happening in the world's second large's economy. We spoke 90 00:03:49,720 --> 00:03:53,120 Speaker 1: to someone who looks at tourism in China, the biggest 91 00:03:53,160 --> 00:03:56,400 Speaker 1: online tourism platform, trip Platform for China, just a moment ago, 92 00:03:56,600 --> 00:03:59,120 Speaker 1: and she said, things with the Chinese consumer are pretty decent. 93 00:03:59,160 --> 00:04:01,160 Speaker 1: Things are picking up again. I hear all the time 94 00:04:01,200 --> 00:04:03,320 Speaker 1: we all do that consumer confidence there has just been 95 00:04:03,400 --> 00:04:07,200 Speaker 1: shot given the pandemic and the extended lockdown. What's your 96 00:04:07,240 --> 00:04:10,400 Speaker 1: feel on that. Have things improved on the ground in China? 97 00:04:10,720 --> 00:04:15,120 Speaker 3: Things are improving in China, and a bit like when 98 00:04:15,400 --> 00:04:18,279 Speaker 3: the kind of the openings happened in the US and Europe, 99 00:04:18,400 --> 00:04:20,720 Speaker 3: different sectors moved to different speed, so you do get 100 00:04:20,720 --> 00:04:23,920 Speaker 3: a bit of weird noise or weird interpretation can be 101 00:04:23,920 --> 00:04:25,839 Speaker 3: out of trying. It depends which sector you're talking to. 102 00:04:26,720 --> 00:04:29,440 Speaker 3: From our point of view, Chinese New Year is a 103 00:04:29,520 --> 00:04:32,520 Speaker 3: very big thing for us. It's there effectively their Christmas, 104 00:04:32,520 --> 00:04:35,080 Speaker 3: and it happens, you know, in the first few weeks 105 00:04:35,120 --> 00:04:37,200 Speaker 3: of the year, so actually trying to gauge what's happening 106 00:04:37,279 --> 00:04:40,840 Speaker 3: is very different difficult for consumer businesses until Chinese New 107 00:04:41,040 --> 00:04:43,320 Speaker 3: Year finishes, which shoill basically be the end of February. 108 00:04:43,760 --> 00:04:46,599 Speaker 3: So that's for us. The real test is where do 109 00:04:46,640 --> 00:04:49,280 Speaker 3: we stand post Chinese New Year? And I think one 110 00:04:49,320 --> 00:04:51,920 Speaker 3: has to gauge the numbers you're getting depending on which 111 00:04:51,920 --> 00:04:55,040 Speaker 3: sector you're talking to. And obviously the Chinese government's very 112 00:04:55,040 --> 00:04:58,479 Speaker 3: focused on managing the property sector, but also keeping the 113 00:04:58,520 --> 00:04:59,960 Speaker 3: consumption alive. 114 00:05:00,160 --> 00:05:01,919 Speaker 2: I want to go back to how John began the 115 00:05:01,960 --> 00:05:05,279 Speaker 2: interview with respect to Novo Nodsk or Pepsi, and I 116 00:05:05,279 --> 00:05:07,080 Speaker 2: would do want to sit on a zembek for a second, 117 00:05:07,160 --> 00:05:09,640 Speaker 2: because we hear all of these analysts talking about how 118 00:05:09,680 --> 00:05:13,479 Speaker 2: much that's going to decrease demand for certain goods. Have 119 00:05:13,640 --> 00:05:16,120 Speaker 2: you already changed your product mix because you said that 120 00:05:16,120 --> 00:05:18,320 Speaker 2: that's how you would respond to this. Have you already 121 00:05:18,560 --> 00:05:21,640 Speaker 2: changed your product mix in anticipation of a lack of 122 00:05:21,640 --> 00:05:22,880 Speaker 2: demand in certain areas? 123 00:05:23,240 --> 00:05:26,000 Speaker 3: We already have the products. What are the products we 124 00:05:26,080 --> 00:05:30,120 Speaker 3: have already been working towards giving people choice in the 125 00:05:30,160 --> 00:05:32,120 Speaker 3: face of a need to reduce the amount of calories. 126 00:05:32,120 --> 00:05:34,560 Speaker 3: Whether it's in the US or other countries in the world, 127 00:05:34,720 --> 00:05:38,039 Speaker 3: Almost every brand we have, we have a low or 128 00:05:38,040 --> 00:05:41,919 Speaker 3: no calorie option available for it. So doesn't matter how 129 00:05:42,000 --> 00:05:44,400 Speaker 3: you want to take your balance of calories, we have 130 00:05:44,440 --> 00:05:47,480 Speaker 3: an option for you. And so over time, yes, the 131 00:05:47,920 --> 00:05:50,200 Speaker 3: total mix has been shifting a little bit to the 132 00:05:50,200 --> 00:05:53,159 Speaker 3: low and the low and the no calorie products, but 133 00:05:53,240 --> 00:05:54,440 Speaker 3: the products already exist. 134 00:05:54,960 --> 00:05:58,160 Speaker 2: So how much do you expect the traditional Coca Cola 135 00:05:58,200 --> 00:06:02,240 Speaker 2: brand to be a much smaller part of your overall business? 136 00:06:02,520 --> 00:06:03,200 Speaker 2: Say in ten. 137 00:06:03,120 --> 00:06:05,680 Speaker 3: Years, Well, you see the Coca Cola brand including all 138 00:06:05,680 --> 00:06:08,560 Speaker 3: the variants. Okay, the original zero cola coke. 139 00:06:08,800 --> 00:06:12,120 Speaker 2: Everybody gets the original from the nineteen sixties commercials. 140 00:06:12,400 --> 00:06:14,240 Speaker 3: I think it will still continue to be a big 141 00:06:14,279 --> 00:06:15,080 Speaker 3: part of the business. 142 00:06:15,839 --> 00:06:18,680 Speaker 4: There's a really delicate moment happening now, and it's being 143 00:06:18,720 --> 00:06:21,200 Speaker 4: talked about a lot on the sidelines of this conference with. 144 00:06:21,320 --> 00:06:22,360 Speaker 3: Israel's president here. 145 00:06:22,400 --> 00:06:25,840 Speaker 4: Of course, how are you navigating the Gaza war given 146 00:06:25,839 --> 00:06:28,280 Speaker 4: the fact that Turkish airlines just got rid of coke 147 00:06:28,360 --> 00:06:29,240 Speaker 4: on their flights. 148 00:06:29,720 --> 00:06:32,320 Speaker 3: Look, there's a lot of tragedy happening there. There's a 149 00:06:32,360 --> 00:06:34,919 Speaker 3: lot of people getting here. We have an Israeli bottler, 150 00:06:34,960 --> 00:06:38,520 Speaker 3: we have a Gaza bottle. Of the employees on both 151 00:06:38,560 --> 00:06:41,479 Speaker 3: sides have been killed, wounded family members, So it's a 152 00:06:41,560 --> 00:06:44,200 Speaker 3: very painful moment. Of the moment, our focus has been 153 00:06:44,440 --> 00:06:49,040 Speaker 3: on supporting our employees, in supporting those with losses, and 154 00:06:49,120 --> 00:06:50,960 Speaker 3: really trying to look after the people who make a 155 00:06:51,080 --> 00:06:52,520 Speaker 3: business decision. So is it. 156 00:06:52,480 --> 00:06:55,320 Speaker 4: Incorrect when Turkish Airlines comes out and says they're getting 157 00:06:55,400 --> 00:06:58,599 Speaker 4: rid of coke because Coca Cola supports Israel only. 158 00:07:00,080 --> 00:07:03,280 Speaker 3: Look, I'm not going to get into one specific a situation, 159 00:07:03,400 --> 00:07:05,280 Speaker 3: but look we have let me let me give the 160 00:07:05,279 --> 00:07:07,400 Speaker 3: simple example. We have an Israeli bottler and we have 161 00:07:07,440 --> 00:07:10,240 Speaker 3: a bottle in the Gaza strip, and so we're very 162 00:07:10,320 --> 00:07:13,200 Speaker 3: much in the business of being in every country. Obviously, 163 00:07:13,360 --> 00:07:15,640 Speaker 3: people who buy our products get to make their own decisions, 164 00:07:16,760 --> 00:07:19,440 Speaker 3: and at the moment we're very focused on the humanitarian 165 00:07:19,440 --> 00:07:21,160 Speaker 3: issues that this has grown up. 166 00:07:21,280 --> 00:07:23,720 Speaker 1: Let's boarden it out just a little bit, James. There's 167 00:07:23,760 --> 00:07:25,520 Speaker 1: a reason that you have a bottle of there and 168 00:07:25,560 --> 00:07:27,840 Speaker 1: a bottle in another place. You've got experience of this 169 00:07:28,440 --> 00:07:32,360 Speaker 1: for decades. Now, is it getting harder to do business everywhere? 170 00:07:32,640 --> 00:07:33,520 Speaker 3: Given what's happening? 171 00:07:33,800 --> 00:07:35,320 Speaker 1: All of the questions we see at a forum like 172 00:07:35,360 --> 00:07:38,000 Speaker 1: this one changes, you know, lots of questions about geopolitics, 173 00:07:38,200 --> 00:07:40,720 Speaker 1: as Lisa talks about earlier in the hour, hot wars 174 00:07:41,080 --> 00:07:43,160 Speaker 1: not just in Gaza but in Ukraine as well. Is 175 00:07:43,200 --> 00:07:46,440 Speaker 1: it harder being everywhere and say maybe ten years ago. 176 00:07:47,160 --> 00:07:50,720 Speaker 3: I don't think so, because in the end, every political 177 00:07:50,800 --> 00:07:55,000 Speaker 3: leadership of every society wants to deliver jobs on the 178 00:07:55,000 --> 00:07:57,800 Speaker 3: ground and an improvement in quality of life. And the 179 00:07:57,840 --> 00:08:01,240 Speaker 3: great thing about the cold business is a local business. 180 00:08:01,440 --> 00:08:04,240 Speaker 3: All the countries in country A are made there, and 181 00:08:04,320 --> 00:08:06,640 Speaker 3: all the cokes in country are made there. It's it's 182 00:08:06,680 --> 00:08:11,160 Speaker 3: a truly local business and jobs, prosperity and a better 183 00:08:11,240 --> 00:08:14,080 Speaker 3: life is what virtually every government on the planet is 184 00:08:14,080 --> 00:08:15,200 Speaker 3: trying to deliver for their people. 185 00:08:15,400 --> 00:08:17,520 Speaker 1: James looks great, this is fantastic. It's just great to 186 00:08:17,520 --> 00:08:18,920 Speaker 1: catch up with you, but always says I've just got 187 00:08:18,920 --> 00:08:21,920 Speaker 1: one final question. My producer Amy has dark coke for breakfast. 188 00:08:22,000 --> 00:08:24,320 Speaker 1: I've got issues with that. Then that's okay. 189 00:08:24,880 --> 00:08:26,560 Speaker 3: Why are you trying to tell her what her choices are. 190 00:08:26,640 --> 00:08:31,000 Speaker 1: Diet coke for breakfast, dark coke forfectfast, just dik coke 191 00:08:31,080 --> 00:08:31,560 Speaker 1: for breakfast. 192 00:08:31,680 --> 00:08:35,200 Speaker 3: Dark coke is making a comeback. I think Saturday Night 193 00:08:35,400 --> 00:08:37,839 Speaker 3: it's coming back. Is it coming back? It looks it's 194 00:08:37,840 --> 00:08:39,760 Speaker 3: a great product. It really is. 195 00:08:41,240 --> 00:08:42,560 Speaker 2: Trying to throw a bone to ain't me. 196 00:08:42,920 --> 00:08:46,000 Speaker 1: Just trying to convert a mee to you know, just 197 00:08:46,000 --> 00:08:48,160 Speaker 1: just water to start the day is just what no 198 00:08:48,240 --> 00:08:51,280 Speaker 1: I know. James Quincy, chairman, see Coca's going to see it. 199 00:08:51,400 --> 00:08:52,520 Speaker 1: Thank you, sir, Thank you very much.