Coca-Cola says lockdown has adversely impacted beverages sector
The beverages sector as a whole has begun to feel the negative impacts of the pandemic. Coca-Cola Amatil released a trading update for the period April 2020 and the first three weeks of May which says that COVID-19 lockdown measures have had an unprecedented impact on the peak Easter, Anzac Day and Ramadan trading period.
Amatil achieved share growth in its major markets but the volume of beverages sold experienced a significant 33 percent decline in April compared to the previous period. This year lockdown has changed the way people celebrate and spend during the traditional peak trade periods of Easter, Anzac Day and Ramadan.
According to the update, the Australian beverage sector has been hit by the full brunt of the COVID-19 restrictions and widespread outlet closures. The Australian market has also noted changes in buying patterns generally with consumers shopping less frequently.
During this tough period Amatil has focused on partially mitigating the impact with “disciplined management of costs and capital expenditure,” says the update. The company expects to see improved trade as stores reopen and restrictions ease, but predicts that economic recovery will take time.
“Despite these challenges, our business has demonstrated resilience and the ability to partially mitigate the adverse impact of the disruptions through our flexible routes to market, diverse channels, disciplined financial management and the strength of our brands. As the lockdown restrictions begin to ease and local economies begin a protracted recovery, we are seeing signs of modest improvement in trading conditions,” says group managing director Alison Watkins.