Coca-Cola CEO says supply chain is creaking around the world due to coronavirus

Coca-Cola is feeling the strain of the coronavirus pandemic on its supply chain. 

“The supply chain is creaking around the world. There are flash points when it’s getting a little harder to get ingredients through, whether it’s delays at the borders, the big changes in channel mix,” CEO James Quincey said Tuesday on CNBC’s “Squawk on the Street.”

Quincey added that Coke’s team is “doing a great job at adapting.”

In the United States, the beverage giant is seeing heightened demand from grocery stores and e-commerce channels for its drinks as consumers stockpile food and beverages in preparation for spending more time at home. As a result, the company is focusing on producing the products most important to its business, such as water, soda and sports drinks. 

“Some of the smallest SKUs will have to be left out,” Quincey said.

Coke withdrew its 2020 outlook Friday, citing the impact of the coronavirus pandemic. Many of its customers, including restaurants, movie theaters and sporting venues, have been forced to shutter temporarily to slow the spread of the virus.