Amid the challenging situation due to COVID-19, The Coca-Cola Company will be halting all commercial advertising of Coca Cola and all its other brands in the Philippines. According to the beverage giant, it is committing its advertising space and budgets towards supporting COVID-19 relief and response efforts for the most affected communities. In a Facebook post, Coca Cola Philippines said it will be re-channeling PhP 150 million (SG$4.2 million) to provision of protective equipment, and beverage for health workers, delivery of food packs to the most vulnerable families, and support for affected small retailers. "Together, we can make a difference," the post read.
This comes following The Coca-Cola Company revealing that it does not expect to achieve its previously provided full year guidance. In a regulatory filing seen by Marketing, the beverage giant said the significant increase in local market policies and initiatives to reduce the transmission of COVID-19 will have a negative impact on the company’s full year financial and operating results.
In the US and across Europe, similar to some of the implementations in Singapore, members of the public are advised to refrain from dining at restaurants, major sporting and entertainment events have been cancelled, social distancing and the adoption of work-from-home measures have been undertaken. “Due to the speed with which the COVID-19 situation is developing, there is uncertainty around its ultimate impact; therefore, the negative impact on our financial and operating results cannot be reasonably estimated at this time, but the impact could be material,” the filing by The Coca-Cola Company read.
The Coca-Cola Company joins Ford Motor, which has withdrawn its outlook for fiscal year 2020 and suspended its dividend, amid the COVID-19 pandemic. According to a CNBC article, Ford will also be borrowing US$15.4 billion from two credit lines as it works towards overcoming the COVID-19 crisis and safeguarding its business, workforce, customers and dealers.
Meanwhile, the beverage giant also realigned its marketing to integrate within operations. Two tears after dropping the CMO role, The Coca-Cola Company appointed Manuel “Manolo” Arroyo as its new chief marketing officer. He now helms the CMO role in addition to continuing serving as president of the company’s Asia Pacific group. James Quincey, chairman and CEO of The Coca-Cola Company said the company is aware of the changing consumer needs, and how critical it is for the company to be agile in how it responds and adapts.