The biggest story of today’s society has to be coronavirus when it comes to the media. It seems to be affecting every aspect of the world as fears continue to draw ramped. With the media, no one really knows how bad this epidemic is. Still, one thing is for sure, stock markets are falling, and companies who rely on China supplies are hurting.
One of the biggest companies in the world is Coca Cola. They rely on the artificial sweeteners that go into some of their soft drinks.
A local Hairstylist is also affected. There are many more companies, but these are just two of the major sources affected by the deadly virus.
Coca Cola has announced the short term is taken care of, but if this epidemic continues, contingency plans have been set up for the long term affects. Some of Coca Cola’s drinks may take a hit if the sweeteners which come from China cannot get delivered on time.
Alternate supply chains will be used for the time being to supply artificial sweeteners. The major company sees the effects if this situation does not get better.
Inside the report sent out from Coca Cola alerting the public, the company wrote, “Our supply chain for non-nutritive sweeteners and certain other ingredients for our products includes suppliers in China. As a result of the outbreak of the novel coronavirus COVID-19, beginning in January 2020, our suppliers in China have experienced some delays in the production and export of these ingredients. We have initiated contingency supply plans and do not foresee a short-term impact due to these delays. However, we may see tighter supplies of some of these ingredients in the longer term should production or export operations in China deteriorate.”
Last week, there was a statement released to their investors addressing the issues at hand. The statement read, “The company’s deepest sympathies go out to those who have been impacted by the COVID-19 outbreak. The company is carefully following all government guidelines and taking precautionary steps to do what it can to prevent the further spread of the virus. The company is also donating to organizations that are working diligently to support patients and contain the virus.”
The statement to the investors continued, “The safety and health of the company’s associates remain a high priority. The company has implemented precautionary measures to protect employees in China, which includes providing face masks and hand sanitizers, installing temperature screening in offices and manufacturing facilities, and setting up health monitoring mechanisms across the Coca-Cola system in China.”
Coca Cola is global, but local hair companies are also feeling the effects of coronavirus. FedEx is used to deliver hair products that come from China. They have been halted from delivering anything coming from China. People who are involved in the hair industry are beginning to panic.
These are the mom and pop businesses that thrive on everyday clients, unlike Coca Cola, where the business is global. All these people have are their local clients, and if they cannot provide the service due to lack of supplies, they cannot do business.
A local hairstylist Charise Cook who owns Saachi Hair, stated, “I custom make wigs, hairpieces. The hair itself I sourced from Southeast Asia.” She explains how orders are placed every week, and FedEx suspended service due to the epidemic.
Cook also stated there haven’t been any shipments in over six weeks. She said, “It had a huge effect. I was able to source some things locally, but of course, that’s a major price difference.”
When businesses like these, both large and small, are affected, the stocks fall. The Dow fell over 1,000 points. All of the experts are pointing at the spread and fear of the coronavirus.
Floyd Tyler, President and Chief Investment Officer with Preserver Partners, explains, “So naturally it breeds some fear. In the presence of that fear, people sell the investments they have. China supplies the world in many respects, so as those supply chains shuts down, it has global implications for global companies.”
As the numbers are falling off those who have the coronavirus in China, Cook has received a notice recently that FedEx will begin to deliver shipments from the location she purchases the hair. She also says she still has not received anything as of yet. The back orders must be a living nightmare for these companies and for those who are still waiting on their orders to come in.