Coca-Cola President and CEO James Quincey attended the press conference of the 134th session of the International Olympic Committee (IOC) held at the Swiss Technology Conference Center in Lausanne with the President of the International Olympic Committee (IOC) and the CEO and Executive Director of China Mengniu Dairy , on June 24, 2019.
Fabrice Coferini | AFP | Getty Images
Coca Cola Chief Executive James Quincey said the company does not expect to have an E. coli outbreak linked to: McDonald’s Harming beverage company sales.
“Based on what’s been reported in the media so far, in terms of the affected states, I would say at this stage it’s not going to have a significant impact on the business,” Quincey said of Coca-Cola’s third-quarter earnings report Wednesday. Conference call.
McDonald’s is Coca-Cola’s largest restaurant customer, and the two companies have had a symbiotic relationship for nearly seven decades. Most recently, CNBC reported that this summer, Coca-Cola gave McDonald’s marketing dollars for its $5 Value Meal, which includes a small soft drink, to make it more attractive to franchisees who might otherwise be wary of deep discounts alert.
“We are an important partner to McDonald’s and they are an important partner to us,” Quincey said. “We’re going to do everything we can to help them resolve what’s going on here.”
On Tuesday, the Centers for Disease Control and Prevention announced that an E. coli outbreak in 10 states has been linked to McDonald’s Quarter Pounder burgers. The agency said 49 cases have been reported, including one death.
CDC investigators have narrowed it down to two potential causes: onions in the burgers and fresh beef patties. Both ingredients are unique to Quarter Pounder burgers, although cooking the patty at the correct internal temperature kills bacteria.
McDonald’s said in a statement Tuesday that Quarter Pounders will be temporarily unavailable in several Western states, including Colorado, Kansas, Utah and Wyoming, as well as parts of other states. The company also said it has instructed all local restaurants to stop serving onion sticks and has suspended distribution of the ingredient in affected areas.
“We’re very confident that you can go to McDonald’s and enjoy our classic favorites,” McDonald’s U.S. President Joe Erlinger told NBC’s “TODAY” on Wednesday morning. “We moved quickly yesterday to put four The Quarter Pounder Burger has been removed from our menu.
It’s unclear what impact the outbreak will have on McDonald’s own sales.
The outbreak comes as consumers generally spend less at restaurants, and both McDonald’s and Coca-Cola have been affected. McDonald’s and its fast-food rivals have been leaning into discounts in the hope that the deals will re-attract customers, while Coca-Cola has been heavily promoting meal combos to boost its own sales.
Coca-Cola’s third-quarter profit and revenue topped Wall Street expectations on higher prices despite sluggish consumer spending. The company’s shares fell more than 2% in early trading.
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