Bucharest, May 17th, 2017 – Coca‑Cola announces today the results of the „Socio-economic impact of the Coca‑Cola System in Romania” study, according to which the presence of this system on the local market generated a value added of EUR 448 million, equal to 0.3% of the GDP.
More than half of this value, generated by the entire Coca‑Cola value chain, represents the contribution to the state budget – EUR 241 million – and equals 0.8% of the total tax income of the Romanian state. At the same time, each job at Coca‑Cola generates other 12 jobs throughout the economy. These are the main conclusions of the study made by consultancy company Steward Redqueen, based on a methodology by Nobel prize winner for Economy, Wassily Leontief.
„Recently, on May 8th, the Coca‑Cola brand celebrated 131 years of existence, and in Romania we celebrate a presence of over a century quarter. 25 years in which we contributed to the growth of the local economy and to the development of the communities in Romania. The added value of the Coca‑Cola System is measured in numbers, but also in the energy we bring in every day, in the support we give to those in need, in the way we protect the environment and the natural resources and, of course, in the way to strive to make other people’s lives better, but our own lives as well. Yes, Coca‑Cola is an international brand, but the Coca‑Cola System is always local”, says Nicoleta Eftimiu, General Manager Coca‑Cola Romania and Moldova.
„Our roots here and the commitment to Romania are strong. Throughout the more than 25 years of local presence, we registered remarkable results in sustainable development and we have generated value for the Romanian economy. I am proud of all the hood things we do here and of the contribution of our System, this gives an even higher meaning to our work. Together with our employees, partners and suppliers, together with members of the communities and consumers of our products, we will continue to build in Romania and add new chapters to this success story, with every new year of local presence”, declared Jaak Mikkel, General Manager Coca‑Cola HBC Romania.
The results of the study, correlated to the 2015 fiscal year, show that:
- The Coca‑Cola System contributes to the economic growth of Romania:
a. The direct added value* of the Coca‑Cola System is EUR 53 million.
b. The total added value of Coca‑Cola and its value chain** in the Romanian economy, directly and indirectly, is EUR 448 million, equal to 0.3% of Romanian GDP.
c. Each euro of added value produced by Coca‑Cola generated other EUR 7.5 in the local economy.
- Coca‑Cola significantly contributes to the state budget:
a. The taxes paid directly by the Coca‑Cola System is EUR 20 million and the entire Coca‑Cola value chain contributes to the state budget with EUR 241 million.
b. The biggest beneficiary of the Coca‑Cola value chain is the state budget. The taxes paid by the Coca‑Cola value chain represent 54% of the total added value.
- Coca‑Cola has a strong impact on employment:
a. Each job at Coca‑Cola generates, indirectly, other 12 jobs throughout the economy.
b. The Coca‑Cola System employs, in Romania, 1,500 people.
c. The presence of Coca‑Cola supports 19,900 jobs, on the entire value chain, which equals to 0.3% of the total labor market in Romania.
- Coca‑Cola contributes to the development of the local communities through relevant programs and allocates, annually, between EUR 700,000 and EUR 1.000.000:
a. The three strategic directions of the Coca‑Cola System for social responsibility are: water and environmental protection, youth and women empowerement, community development.
b. Some of the projects implemented in 2015 include „Happy Moves”, „Urbathlon”, „SGIM” – programs which promote an active healthy lifestyle – and „the Pedagogical Forest”, „The Responsible Mountain Hiking School”, „Adopt a river from its spring to its mouth”, „Tree Day” – projects for environment and natural resources protection and education in this area. 50,566 people were moved and over 66,500 trees planted in 2015, through the programs of the Coca‑Cola System.
Conducted by the consultancy company Steward Redqueen, based on the financial data of 2015, „The Socio-Economic Impact of the Coca‑Cola System in Romania” study details the impact generated by The Coca‑Cola System and its value chain in Romania’s economy, by generating employment and added value in important economic sectors, but also through the contribution to the local communities’ development. The study distinguishes between direct impact of the Coca‑Cola System and indirect, through its suppliers (of products and services) and customers (promiximity shops, supermarkets, hypermarkets, HoReCa). Since 2012, Stewardredqueen has completed 42 similiar studies for the Coca‑Cola System in 31 countries in Europe, Africa, Middle East and Caraibe, as well as 2 pan-European studies.
About The Coca‑Cola Company
The Coca‑Cola Company (NYSE: KO) is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands and nearly 3,900 beverage choices. Led by Coca‑Cola, one of the world's most valuable and recognizable brands, our company's portfolio features 21 billion-dollar brands, 19 of which are available in reduced-, low- or no-calorie options. These brands include Diet Coke, Coca‑Cola Zero, Fanta, Sprite, Dasani, vitaminwater, Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak. Through the world's largest beverage distribution system, we are the No. 1 provider of both sparkling and still beverages. More than 1.9 billion servings of our beverages are enjoyed by consumers in more than 200 countries each day. With an enduring commitment to building sustainable communities, our company is focused on initiatives that reduce our environmental footprint, create a safe, inclusive work environment for our associates, and enhance the economic development of the communities where we operate. Together with our bottling partners, we rank among the world's top 10 private employers with more than 700,000 system associates. For more information, visit Coca‑Cola Journey at www.coca-colacompany.com, follow us on Twitter at twitter.com/CocaColaCo, visit our blog, Coca‑Cola Unbottled, at www.coca-colablog.com or find us on LinkedIn at www.linkedin.com/company/the-coca-cola-company.
About Coca‑Cola HBC
Coca‑Cola HBC is a leading bottler of The Coca‑Cola Company with a sales volume of more than 2 billion unit cases. It has a broad geographic footprint with operations in 28 countries serving a population of approximately 595 million people. Coca‑Cola HBC offers a diverse range of non-alcoholic ready to drink beverages in the sparkling, juice, water, sport, energy, tea and coffee categories. Coca‑Cola HBC is committed to promoting sustainable development in order to create value for its business and for society. This includes providing products that meet the beverage needs of consumers, fostering an open and inclusive work environment, conducting its business in ways that protect and preserve the environment and contribute to the socio-economic development of the local communities. Coca‑Cola HBC is ranked beverage industry leader in the Dow Jones Sustainability World and Europe Indices, and is also included in the FTSE4Good Index.
Coca‑Cola HBC has a premium listing on the London Stock Exchange (LSE: CCH) and its shares are listed on the Athens Exchange (ATHEX: EEE). For more information, please visit http://www.coca-colahellenic.com.
* The direct value added of the Coca‑Cola System includes salaries and taxes, except VAT
** The total value added of the Coca‑Cola System value chain includes salaries, taxes (VAT included) and profit of the companies in the value chain, except the companies forming the Coca‑Cola System.