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Coca-Cola CEO Muhtar Kent on the company’s sponsorship of the Olympics and usage of Olympic tickets, the impact of rising corn prices, and the Europ...
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We have this shares of Coca-Cola hitting a fourteen year high today after announcing plans to -- -- -- operating structure.
Into three units Coca-Cola America's Coca-Cola international and -- -- bottling operations outside.
North America.
But the company is also spending millions right now on the Olympic Games a London and that is where she is close claimant who caught up the chairman and CEO looked -- -- -- explicit -- -- land zero live Olympic Stadium looks beautiful.
Greetings from London Cheryl gets its day three of of course the big London Olympics -- aside from the fact that we just -- hearing kind of a bad cover band version of champagne over supernova everything's going great here except that one of the biggest stories is -- a list on -- The empty -- want to show you the front pages of today's newspapers of course the tabloids here just eating this -- but empty seat fiasco look at this one.
This from Sebastian code the lord who's in charge of the London Olympics we will fill the empty Olympic seats.
And -- are being pointed out.
At a business story at the sponsors that some of these big gigantic sponsors.
Are giving out their tickets don't you know the fancy pants rich clients and that those people in -- are not using them so.
We went straight to the top arguably the most.
Large CEO here the biggest CEO is of course which are Kent of Coca-Cola we got a Fox Business exclusive with him and we asked him.
What about the CT says don't look at us we're making sure ours are being used listen to what he set.
Shows.
And dessert we.
I have -- -- very high usage rate for tickets.
So.
None of our tickets are guarding.
And see how can tell you what I would -- absolutely we week we we have people.
That are there.
And and making sure that we don't have any.
Empty seats and we have usage of -- because that's the key usage rate of Arctic.
They have to make sure of that because guess what the big news is that the investigation will be doing what they're calling name and shame.
They will name people aren't using their tickets -- -- bush and -- but you know what that is weighed down on the list of important issues that muhtar -- is facing so.
We went over to the hotel there where Coca-Cola has its -- the -- -- hotel.
Today and at a Fox Business exclusive sat down with that -- can't talk to him about high corn prices of course they -- points serve.
We talked -- about whether a weaker or stronger dollar is better for him -- And the name of the country he feels will be the first to lead us out of the global recession.
I think there is that -- -- for us to raise awareness.
Of this global societal issue.
Through and movement like Olympic Games because.
We have.
This its big societal.
Issues in the world Lama could be solved by only government or business.
Or civil society is gonna come through -- form this golden triangle.
Of increased collaboration.
Between government business and civil society and we're proving that his Olympic Games so banning -- is not the answer I don't think banning anything.
I think working together.
Closer.
More effectively.
To tackle some societal.
Issues of our world challenges of -- world is -- Yes let me get to the great -- of 2012.
We've had our reporter Jeff Flock in the cornfields he literally -- -- open.
Corn and seeing how damaged it is from the drought corn syrup obviously an important ingredient to what Coca-Cola uses -- many of its products.
Can you quantify how much this will hurt your bottom line in the next couple quarters yes.
Corn was heading from five to four dollars a bushel and now it's.
In the last two months.
Rocketed up to levels that we have -- -- record levels.
But -- corn is certain amount to only a commodity that impacts us.
-- we -- is much much much bigger much more important.
But also many other commodities.
Like aluminum.
Lots of -- points not just high prices of corn you've got a protracted global slowdown.
You've got -- US slowdown tough recovery there China is not so hot as it was when it comes to growth.
And then depending on the day of course a stronger US dollar.
Which one has the power to affect Coca-Cola concerns for months.
I don't think you can decision take one.
-- -- worries I think.
Today we.
After all realize that that this is a crisis that is not going to go away quickly.
Unemployment is not gonna come down quickly.
We -- have to get used to living and operating in this world the volatility.
Uncertainty.
That's the norm.
And the future belongs to those who can continue to -- the calculus for growth in this world of uncertainty.
When you talk about which countries and regions are struggling we know Europe is tough but still well.
Well I think.
Europe.
Is because it it going to continue to struggle.
For a while -- no question about it.
-- -- talking about Europe as one.
One place this probably not the right way Europe is still a tale of different cities.
You've got some parts of Europe not doing as well as other parts you -- east and Europe Poland and Germany.
Parts of Scandinavia and not doing off so badly.
And and you've got Southern Europe still struggling because of all the issues that we know.
But then then the United States I think is one where.
I still believe was gonna come out of this crisis first because of the strong demographics is still strong.
-- -- and culture for four entrepreneurial spirit.
And Africa the youngest billion is continuing to generate very strong growth.
Latin America is still doing well Eurasia.
Is still doing quite well in the Middle East and and and Turkey and and Eurasia at large.
And China I mean yes it is slowing down but who wouldn't take 5678%.
Growth rates of today.
And finally.
You got your job the Coca-Cola in 1978 fight cancer and classified -- at a time when so many Americans are unemployed at this point.
Do you still believe in the American dream.
I absolutely have tremendous belief in the American dream and I think.
I do believe that as I said America is gonna come out of this crisis first I would never bet against America.
Okay how much money are we talking about when it comes to what Coca-Cola spends they don't want to put a number on it.
Our research is showing a hundred million dollars and that is for the privilege of putting this the -- -- of course these -- the special bottles and they're selling here.
Wrapped in the Great -- flag and so this is a huge deal for Coca-Cola they feel that there -- -- direct correlation between their sponsorship and sales globally here.
