“The socio-economic impact of the Coca-Cola system in Romania” survey reveals that the added value brough by the giant corporation on domestic market amounts to EUR 448 million, meaning 0.3 percent of Romania’s GDP. The direct value added generated by the Coca-Cola system is EUR 53 million.
More than half of this amount, generated by the entire Coca-Cola value chain, represents the contribution to the state budget of EUR 241 million and represents 0.8 percent of all taxes collected by the Romanian state. At the same time, for every direct job at the system, there are 12 more supported in the local economy, while each euro of added value produced by Coca-Cola generates another EUR 7.5 in the rest of the national economy.
“We have been in Romania for over 25 years and we have a strong commitment. It is important to understand the impact of the Coca-Cola system in the Romanian economy,” Nicoleta Eftimiu, General Manager Coca-Cola Romania and Moldova stated in a press conference on Wednesday.
The Coca-Cola system pays EUR 20 million taxes directly to the Romanian state, and the entire Coca-Cola value chain contributes to the public budget by EUR 241 million.
“Romania is a model of best practice in Coca-Cola system. I’m proud of the good things that we are doing here and the contribution of our system; this gives even greater significance to our work. Moreover, Romania is a hub of innovation in the region, an exemple in this sense being Coca-Cola Lime flavour or the new Fanta bottle, which were experienced here for the first time,” Jaak Mikkel, General Manager Coca-Cola HBC Romania also said, adding that Coca-Cola registered in 2016 a turnover increasing by 9 percent year-on-year on domestic market.
The Coca-Cola system employs 1,500 people. Its local value chain starts from the farmers producing raw ingredients used in production to the people selling Coca-Cola beverages in supermarkets and bars. Overall, 19,900 employees, or 0.3 percent of the total labour force, are related to the system’s activities in Romania.
Not the least, Coca-Cola system contributes to the development of local communities through relevant programs and annually allocates between EUR 700,000 and EUR 1 M.
The study is based on 2015 financial data and was carried out by Steward Redqueen in Haarlem (the Netherlands). The results presented in this report distinguish between the direct (related to Coca-Cola itself), indirect (related to trade partners and suppliers), and induced impacts (related to household spending). The main results are presented in terms of value added (household income, tax revenues, and company profits and savings) and employment supported by the Coca-Cola system.