From Bloomberg Technology:
As Coca-Cola Co. Chief Executive Officer James Quincey settles into his new job, he’s facing a challenge that most of his predecessors never worried about: digital disruption.
Consumers are increasingly shopping online, spending more time on mobile apps, and getting groceries delivered to their homes. And that’s hitting Coca-Cola in ways you might not expect, Quincey said in an interview from his office in Atlanta.
When shoppers skip trips to the local mall and get their clothes at Amazon, they also forgo buying Coke at a vending machine or food court. So while the decline of retailers has mostly focused on bankrupt apparel chains and shuttered storefronts, a brand like Coca-Cola is suffering as well.
“Digital is changing the way you behave,” he said. “It affects other categories that are not the primary reason you thought about making the shopping trip.”
Turning Coke into a winner of the digital age — rather than another brick-and-mortar victim — is a key priority for Quincey.
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The disruptive power of tech has been especially pronounced in some overseas markets, including China. When Quincey was chief operating officer in early 2016, he saw sales in that country slump — hurt by a decline in sales to noodle shops and other restaurants.
The shops themselves weren’t the problem — they were still selling large quantities of food — but more customers were ordering online and having their meals delivered. The problem for Coca-Cola: The restaurants offered glass bottles and sizes that weren’t suited to being transported via scooter.
Link to the rest at Bloomberg Technology