There will be improvement in consumer sentiment if the Brexit dela is passed by lawmakers in the United Kingdom, said Coca-Cola CEO James Quincey.
“If it mercifully comes to an end, then yes, I do think that sentiment will improve, maybe not overnight, but over time and hopefully going into 2020,” Quincey told analysts on the company’s earnings call Friday.
An agreement to facilitate the smooth departure of the UK form the European Union was arrived at earlier this week at Brussels. It is now up to the UK parliament to vote on the agreed deal and later ratify it through a legislation in both houses of parliament. The deal will not be supported by it, the Northern Irish Democratic Unionist Party has said.
But British businesses and consumers have been under pressure for three years now because of the uncertainty surrounding the Brexit deal.
And like many other companies, its inventory in the UK had been increased by Coke in anticipation of a no-deal Brexit wherein the UK would be leaving the EU without any trade agreement and trade between the two parties would be governed by trade rules of the World Trade Organization.
“It would be fair to say that in the short term, the U.K. business has been impacted by the consumer sentiment, driven by Brexit in the U.K., which has affected everyone — the entire business outlook in the U.K.” Quincey said.
The thirds quarter fiscal results was announced by Coke on Friday and the earnings of the company were absolutely in line with what the market and analysts had been expecting. However some analysts were expecting a better results because of an increased sale of healthier drink options.
(Adapted from CNBC.com)