Coca-Cola's Asia business isn't expecting any price shocks to its supply chain, executive says

  • Coca-Cola's Asian market isn't projected to feel some of the cost pressures experienced by the U.S., said John Murphy, the company's Asia Pacific president.
  • Murphy said, that the Asian market offered opportunities to diversify its portfolio with products such as tea.

Coca-Cola's Asian market isn't projected to feel some of the cost pressures experienced by the U.S. and it boasts opportunity for the company to invest in healthy alternatives, said John Murphy, the company's Asia Pacific president.

Coca-Cola's CEO and President James Quincey told CNBC last week that the company is seeing cost pressures partly due to U.S. President Donald Trump's tariffs on steel and aluminum. That commentary followed Coke reporting better-than-expected second-quarter earnings and revenue strengthened by its efforts to bring its diet drinks around the world.

"Our cost dynamics vary dramatically by markets across the world, and, here in Asia-Pacific, we do not see a similar impact — certainly over the foreseeable future. Aluminum prices are quite stable for us for the rest of the year," Murphy told CNBC. "Overall, we don't see additional pricing outside of our normal cycle for the rest of the year here in Asia Pacific."

Murphy also emphasized that, despite Coca-Cola being a global brand, it has been able to secure its presence in various regions through strong roots in local markets.

He explained that the Asian market gave the company ample opportunity to diversify its portfolio with beverages such as tea. Apart from selling products based on local tastes, the company has its eyes set on healthier alternatives that remain a huge potential for growth in the region, Murphy said.

"We see a trend towards having a much more moderate lifestyle and food and beverage consumption habits. So we're seeing that. And yet, we see it as a terrific opportunity given the relatively underdeveloped state of the industry in many of our Asia-Pacific markets," he added.