the socio-economic impact of the coca

THE SOCIO-ECONOMIC IMPACT OF
THE COCA-COLA SYSTEM IN SERBIA
Prof. Ethan Kapstein, INSEAD
Dr. René Kim, Willem Ruster MSc, Beatrijs van Manen MSc
Decembеr 2011
OF OUR EMPLOYEES
IN THREE FACTORIES ACROSS SERBIA
ARE MAKING EVERY DAY REFRESHMENTS FOR MILLIONS OF CITIZENS IN
THE REGION.
ARE REGISTERED IN SERBIA AS A DIRECT
CONSEQUENCE OF ONE NEW WORKPLACE CREATED IN OUR COMPANY.
NEW JOB OPENINGS
69
HAS BEEN INVESTED IN PROCUREMENT
OF LOCAL GOODS AND SERVICES.
345
IS THE TOTAL SUM OF OUR COMPANY'S
CONTRIBUTION TO THE GDP OF SERBIA.
MILLION EUR
MILLION EUR *
* direct and indirect contribution
Content
1
Introduction
3
The socio-economic impact of the Coca-Cola system in Serbia
7
Scenario: Import instead of local production
10
1
The purpose of the report
1.1. The Coca-Cola system in Serbia
13
14
2
The Coca-Cola in Serbian economy: an Overview
16
3 Methodology
4
5
6
19
Current economic impact
23
4.1.Direct value added of “going concern” operations
4.2.Total value added of “going concern” operations
4.3.Employment related to “going concern” operations
24
25
28
Scenarios analyses
5.1.Cofinancing of local production
5.2.Other possible scenarios
30
31
Coca-Cola and local community
32
7 Conclusions
29
34
INTRODUCTION
04
We present you a study "Socio-economic impact of the Coca-Cola system in Serbia" done by
the consulting company Steward Redqueen. This report is part of a series of documents prepared
for the members of the Coca-Cola system in Europe. Its purpose is to show, using an economic
model, the degree of influence of Coca-Cola system in the countries in which it operates, and where
the influence is defined as the value added and employment incentive.
Between January and November 2011, Prof. Ethan B. Kapstein of INSEAD University, in collaboration
with Dr. Rene Kim, Mr. Willem Ruster MSc and Ms. Beatrijs van Manen MSc from Steward Redqueen
company in Harlem (the Netherlands), carried out a study on the impact of the Coca-Cola system on
the Serbian economy. This study was based on an economic model which consists of “driving”
the financials of the Coca-Cola system through the input-output tables of the Serbian economy.
Consulting company Steward Redqueen is a consultancy firm at the interface of business and
community and offers insight into the challenges, risks and business opportunities based on their
interdependency. The Steward Redqueen company provides strategic consulting services in the
following areas: socio-economic impact assessment, developing market finances, environmental, social and corporate governance. The Steward Redqueen team has a strong track
record in this area – not least because majority of its members have been part of Triple Value Strategy
Consulting. Since 2006 Steward Redqueen has completed 22 individual studies in the food and
beverage sector. Steward Redqueen has also performed socio-economic impact assessment for
multinational mining companies, financial development institutions, banks and recreation organizations
in Africa, Asia, South America and Europe. On these projects Steward Redqueen cooperates with
INSEAD professor Ethan B. Kapstein, who is an associate partner of Steward Redqueen. For more
information, visit www.stewardredqueen.com
Professor Ethan B. Kapstein holds the INSEAD Chair in Political Economy at INSEAD, an
international business school with campuses in Fontainebleau (France), Singapore and Abu Dhabi.
Previously he held positions at Harvard University, the University of Minnesota and the Organization
for Economic Development and Cooperation (OSCE). Professor Kapstein serves as an economic
and strategy consultant to government agencies and many of the world's leading multinational
corporations.
The model of socio-economic impact assessment
The model of socio-economic impact assessment measures the direct and indirect impact of a company
on the country in which the company operates. The presence of foreign companies is often
perceived differently by different people. Some regard them as providers of economic activity, jobs
and wages while others see them as extractors of (hard) money, exploiters of cheap labour, or polluters
of the environment. It's hard to find a middle ground between these two extremes that affect the
opinion of stakeholders. Therefore, the model chosen in this study based its findings on the quantified
direct and indirect company impact on the economy.
05
SOCIO-ECONOMIC IMPACT
OF THE COCA-COLA SYSTEM
IN SERBIA
This study was based on an economic model which consists of “driving” the financials of the
Coca-Cola system through the input-output tables of the Serbian economy.
The analysis distinguishes between:
direct ( re l a t ed t o Coca-Cola it s e lf),
indirect ( re lat ed t o t rade part n er s and sup p lier s),
induced impacts ( relat ed t o h o u sehold sp end ing).
The main results are presented in terms:
o f v a l u e a d ded ( defi n ed as h o usehold incom e, tax rev enues, and com p a n y profi ts
a n d sa v i n gs ) an d emplo ymen t gener ation attr ib utab le to the C oca-C ola syste m .
08
The major conclusions, based on fiscal year 2010 data, are as follows:
MILLION EUR
DIRECT VALUE ADDED
MILLION EUR
TAX PAYMENTS
EMPLOYEES
The direct value added of Coca-Cola
system is EUR 25 million (0.08% of GDP),
and is associated with EUR 345 million of
value added to the Serbian economy (or
1.18% of GDP). Therefore, every Euro of value
added at Coca-Cola relates to 13 Euros value
added in the Serbian economy;
The tax payments of the Coca-Cola
system is EUR 3 million and is associated
with 107 million euros tax flows to the
Government , accounting for 1.6 percent
of total Serbian tax income. Therefore,
every euro of Coca-Cola tax payments relates
to 35 Euros of tax payments in the broader
economy;
The Coca-Cola system employs 1,300,
and relates to 18,500 jobs throughout the
Serbian economy (or 0.62% of total Serbian
labour force). Every job at Coca-Cola relates
to 13 jobs in the broader economy
09
HYPOTHETICAL SCENARIO
- IMPORT INSTEAD
OF PRODUCTION
In order to get best possible quality data, a hypothetical scenario applicable to Coca-Cola has been
analysed using this model. It emphasises the impact of local production in comparison with a hypothetical situation in which all beverages are imported and only local distribution and trade channels
are used. The analysis of such scenario has yielded the following conclusions:
When substituting imports for Coca-Cola's local operations, the Serbian
economy would suffer a loss of EUR 51 million in value added (or 0.17% of
GDP) and almost 2,700 jobs (or 0.09% of total labour force).
million EUR
While consumers often perceive Coca-Cola beverages as the product of a multinational company
seated in Atlanta in Georgia (USA), they are actually produced by a local bottler Coca-Cola Hellenic
(CCH) in Serbia, which buys syrup concentrate from The Coca-Cola Company (TCCC). The bottling
plant employs local workforce and generates revenue directly at the factory, but also supports the
employment, earnings and tax revenue for the entire economy through the purchase of goods and
services from various suppliers and selling their products through a widely diversified distribution
network (including hotels, restaurants and supermarkets), where a large part of the revenue depends
on the consumption of Coca-Cola products. This means that Coca-Cola is largely a domestic
company in the countries in which it operates.
This raises the question, what if Coca-Cola products were imported rather than produced locally?
That scenario is taken up at the end of this Report. As will be seen, the impact on jobs, incomes,
and tax revenues would be significant. Coca-Cola provides more than refreshment to the countries
where it operates: it also provides a source of economic growth and vitality.
In order to analyze the impact of the Coca-Cola system, a special economic model has been developed
based on input-output analysis, which describes the linkages between the different sectors of the
economy. Section 1 provides an overview of the Coca-Cola system in Serbia; Section 2 briefly
describes the business context while Section 3 describes the model used; Section 4 provides an
overview of the economic impact of the Coca-Cola system, while the results of scenario analysis are
presented in Section 5. Section 6 deals with the Coca-Cola system in Serbia and its community
efforts. The conclusions are given at the end.
11
THE PURPOSE
OF THE REPORT
THE COCA-COLA SYSTEM IN SERBIA
1
1.1 THE COCA-COLA SYSTEM IN SERBIA
The Coca-Cola Company has been present in Serbia since 1967, when a license was granted to a
local company to produce and sell Coca-Cola products in the country. The following year a new
bottling factory producing Coca-Cola started its operations in Zemun, Batajnicki Drum Street, at the
very same location where it is still produced today. At the present time, the Coca-Cola System in
Serbia comprises a bottler, Coca-Cola Hellenic Serbia (Coca-Cola HBC Serbia) and Coca-Cola
Barlan S&M, a subsidiary of The Coca-Cola Company.
Subotica
Sombor
Vojvodina
Odžaci
Bačka Palanka
Novi Sad
Vršac
Ruma
Belgrade
Šabac
Loznica
SERBIA
Bor
Kragujevac
Užice
Čačak
Zaječar
Paraćin
Kraljevo
PRODUCTION
PLANT
Kruševac
Niš
Pirot
Novi Pazar
Leskovac
Vlasinka
Peć
Priština
Kosovo
Vranje
DISTRIBUTION
CENTER
Uroševac
Prizren
Exhibit 1: Map of Serbia, including CCH Serbia’s main locations
Today, Coca-Cola Hellenic Serbia is one of the largest companies in the non-alcoholic beverage
industry in the country. It employs 1,300 people, and the business is divided into three units:
Coca-Cola Hellenic Serbia (soft drinks), Vlasinka (mineral water), which was acquired in 2005, and
Fresh & Co (juices and fruit juices), acquired in 2006. Coca-Cola Hellenic Serbia is located in Zemun,
occupying an area of about 65,000 m2 and consists of six production lines, warehouses and offices.
14
EMPLOYEES
PLANTS
DISTRIBUTION
CENTERS
DISTRIBUTORS
AND RETAILERS
CONSUMERS
There are four distribution centers across the country that supply around 37,000 distributors and
retailers, who, in turn, serve about 7.9 million consumers in Serbia. The product portfolio includes
the world`s leading brands such as Coca-Cola, Coca-Cola Zero, Fanta, Sprite, Schweppes, Nestea,
Burn and Ultra Energy as well as local brands such as Rosa, neXt, Su-voce and Joy.
Exhibit 1 shows the main location of the Coca-Cola Hellenic Serbia.
15
COCA-COLA IN
THE SERBIAN ECONOMY
2
2. COCA-COLA IN THE SERBIAN
ECONOMY: AN OVERVIEW
Like every business, the Coca-Cola system depends on the economic environment in which it operates.
The economic crisis of 2008-2009 dealt Serbia a sharp setback, leading the country to seek a EUR
4 billion Stand-By Arrangement with the International Monetary Fund (IMF) in 2009. Prior to the crisis,
Serbia experienced a relatively healthy GDP growth of nearly 7 percent in 2007, which was followed
by decline to 3 percent in 2009 and 1.8 percent in 2010. Despite the attractiveness of Serbia as a
export distribution platform, foreign direct investment fell below one billion euros in 2010. Average
income of about 440 euros per capita is still much below the European average, while the official
unemployment rate reached more than 19 percent in 2010.
Exhibit 2 and Table 1 show data on the Serbian economy. Table 1 also shows how Coca-Cola
operates in Serbia.
10%
8%
6%
4%
2%
0
-2%
1.
200
2.
200
3.
200
4.
200
5.
200
6.
200
7.
200
0.
8.
201
200
-4%
9.
-6%
Source: Eurostat
200
Serbia
European Union (27 countries)
Exhibit 2: GDP growth of Serbia vs European Union
17
Serbian
economy
Coca-Cola
system share
Household consumption
Table 1: A snapshot of the Serbian economy in 2010
Tax receipts as % of GDP in 2008.
Source: MMF, World Bank
18
as % of BDP
METHODOLOGY
3
In the process of producing, packaging, promoting and delivering Coca-Cola products to
the final customer, the Coca-Cola system stimulates economic activity throughout the
entire value chain. That means its own operations have a supporting effect on upstream as
well as on downstream businesses. The upstream local suppliers and producers are more
dependent on the demand of the production plants of raw materials than the distributors
and retailers which distribute the company’s products. Both the supported upstream and
downstream activities create income and tax revenue and in turn stimulate economic
activity in their respective value chains.
Indirect (2 nd Round) Impact
(Economic impact of (suppliers’) suppliers)
Consumption
Coca-Cola products
Direct (0th Round) Impact
(Coca-Cola)
Indirect (1st Round) Impact
(Direct suppliers and Trade)
Trade
Coca-Cola
Company in Serbia
Coca-Cola
Hellenic in Serbia
Induced (3 rd Round) Impact :
Re-spending of salaries
Exhibit 3: Several rounds of impact make up the total effect
of Coca-Cola system in Serbia on the Serbian economy
(arrows are representing expenditures in money terms)
20
Coca-Cola
suppliers of
goods & services
Exhibit 3 depicts the approach taken to quantify the economic activities linked to the Coca-Cola
system. On the left hand side, the starting point for the analysis is the final Coca-Cola consumption
that can be traced in money terms throughout the economy. When a consumer buys a bottle
of a Coca-Cola drink in the supermarket a part of what he spends is revenue for this supermarket,
another part goes to the distributor that transported this product from the production plant to
the selling point and part of it goes to the Coca-Cola bottler. All of these parties procure
goods and services from suppliers, pay salaries and taxes, invest and make profit. To capture
the impact, the total consumption figure of Coca-Cola products serves as initial injection into
a so-called Social Accounting Matrix which represents all sector interlinkages in a local
economy (for details see Appendix I). In doing so, the total economic impact related to the
presence of the Coca-Cola system can be traced and are divided into several effects:
• Direct (0th Round) impact: effects directly related to expenditures of the local Coca-Cola
bottler and the local TCCC entities. That includes salary and (income) tax payments as well
as profits generated that remain in the local economy and direct employment at the company;
• Indirect (1st Round) impact: Direct suppliers and Trade: effects arising at
upstream-suppliers and downstream-retailers in the value chain of Coca-Cola products
(e.g. jobs and salaries provided by suppliers and retailers);
• Indirect (2nd Round) impact: (suppliers’) suppliers: effects that come about as suppliers
and retailers inside the original value chain of Coca-Cola products procure goods and
services from suppliers outside the original value chain of Coca-Cola products which pay salaries
and taxes as well (e.g. employment and salaries generated by suppliers’ suppliers);
• Induced (3rd Round) impact: re-spending of salaries: effects caused by the re-spending
of salaries by employees of Coca-Cola, its trade partners and (suppliers’) suppliers
whose jobs are directly or indirectly supported by Coca-Cola.
21
CURRENT
ECONOMIC IMPACT
4
In this Report an input-output model, as described in a previous section, has been applied to
determine the economic impact of the Coca-Cola system. This section reports on the major
results. First Coca-Cola’s impact on value added (incomes, profits and taxes) within Serbia is
discussed. The employment generated by the Coca-Cola system, and its impact on the income
distribution, is discussed subsequently.
4.1 Direct value-added of ’going-concern’ operations
A company’s value-added is defined as its revenues minus the cost of all goods
and services. In other words, it is equal to a company's salary and tax payments and its
profits. To arrive at the direct value-added for the Serbian economy, one has to subtract
the salary and tax payments and profits that accrue to foreign shareholders. Exhibit 5
shows the value-added related to Coca-Cola Hellenic Serbia and Coca-Cola Serbia.
The total consumption of Coca-Cola products in Serbia is EUR 423 million, of which EUR
76 million VAT (included in retail prices), and respectively EUR 32 million, EUR 176 million
and EUR 138 million for off-trade margin, on-trade margin and Coca-Cola Hellenic Serbia
revenues.
423
76
32
176
Local procurement:
EUR 69 mil
138
8
7
153
Taxes:
EUR 3 mil
Salaries:
EUR 22 mil
Total
Consumption
Coca-Cola
Serbia
VAT
Off-trade
Margin
On-trade
Net
Net
Margin
Revenues
exports
Coca-Cola Hellenic
Serbia
TCCC
expenses
Exhibit 5: Direct value added related to the Coca-Cola
system in Serbia (in million Euros)
24
Total
Coca-Cola
System Serbia
Direct
Value
added
25
ADDED
VALUE
The combination of CCH revenues
(from local revenues and exports)
and Coca-Cola Serbia represents
the Coca-Cola system in Serbia,
and amounts to EUR 153 million.
Of this, EUR 3 million are tax payments, and EUR 22 million are net
salaries.
These taxes and salaries represent the direct value added of EUR
25 million, or 0.08% of the GDP.
The basis for the broader economic effects are the trade margins (total EUR 208 million) and
the local procurement of goods
and services (EUR 69 million), see
Section 4.2.
4.2 Total value-added of ’going-concern’ operations
Business activities contribute to the national economy in part through its generation of
incomes, profits, and taxes, or what is called “value added.” As can be seen in Exhibits
6 and 7, the Coca-Cola system contributed over EUR 345 million of value added to the
Serbian economy in 2010. The single greatest economic beneficiary of the Coca-Cola system's
activities (including production and consumption of beverages) was Serbian households,
which received one-third of this amount, followed by companies in Coca-Cola’s value chain;
the Serbian government was also a major recipient of value-add, enjoying tax revenues of
nearly EUR 107 million. The breakdown of these tax revenues in Coca-Cola’s value chain
is shown in Exhibit 8. In addition, one could also consider the re-spending of salaries that
are paid by Coca-Cola, trade parties and suppliers (i.e. induced effects). This leads to an
extra effect of EUR 76 million of value added.
25
Exhibit 7 examines the value added per sector. As it can be seen, the on-trade sector is particularly
significant in terms of value added generated, amounting to nearly EUR 138 million, thanks to the
production and sale of Coca-Cola products. The on-trade sector’s generation of value added suggests
the growth of Serbia as a tourist destination.
total income
for Serbia
Round 3: re-spending of salaries
Round 2: suppliers’ suppliers
Round 1: direct suppliers and trade
Round 0: Coca-Cola system
127
21
5
98
142
30
17
95
16
3
38
€ 127 mil
25
Profits & Savings
Tax income
Exhibit 6: Value added related to the Coca-Cola
system in Serbia (in million Euros)
26
mil
76
282
22
Households Income
€ 107
€ 112 mil
151
25
89
421
Total
€ 345 mil
( = 1,18% of GDP)
Round 3: re-spending of salaries
Round 2: suppliers’ suppliers
421
88
Round 1: direct suppliers and trade
Round 0: Coca-Cola system
76
138
38
€ 345 mil
( = 1,18% of GDP)
25
58
18
17
28
282
45
4
25
Agriculture Manufacturing Services Coca-Cola
Serbia
Transport
Wholesale
Retail
On-trade
VAT &
Households
Taxes
Total
downstream
upstream
Exhibit 7: Value added per sector related to the
Some numbers may not sum up due to rounding.
Coca-Cola system in Serbia (in million Euros)
76,1
5,2
106,8
5.2
98.3
11,2
9,0
0,0
Corporate
tax
2,7
Payroll
tax
0,5
Other
Taxes
2,0
3,2
Total taxes
paid by
Coca-Cola
Serbia
3.2
Taxes
paid by
Suppliers
Taxes
paid by
Off-Trade
Taxes
paid by
On-Trade
VAT on
Coca-Cola
products
Taxes
paid by
suppliers’
suppliers
106,8 = 1,6% of total taxes
Round 2: suppliers’ suppliers
Round 1: direct suppliers and trade
Round 0: Coca-Cola system
Total
Exhibit 8: Breakdown of taxes in Coca-Cola’s value
chain in Serbia (in million Euros) 4
27
4.3 Employment related to ’going-concern’ operations
The United Nations (UN) and the Serbian Statistical Office publish detailed
d information on
a regular basis about the condition of the labour market in Serbia. This information,
ormation, when
used in conjunction with the output per sector data obtained from Serbia's Social
Accounting Matrix (SAM), enables the generation of statistics on the
he employment
intensity (i.e. number of jobs per EUR of output) of the Coca-Cola system.
m. In the same
way, estimates can be provided of employment supported by the Coca-Cola
Cola system at
the sectoral level, indicating which sectors in particular are most “dependent”
pendent” on the
production and sale of Coca-Cola products.
Approximately 1,300 direct workers in the Coca-Cola system support more
ore than 18,000
jobs, or 0.62% of the labour force, throughout the Serbian economy, for a multiplier effect
of 13; to put this in other words, each direct Coca-Cola worker helps to support
upport 13 other
workers throughout the Serbian economy. Again, when considering also the re-spending
of salaries (i.e. induced impact), the extra effects on jobs is 3,400.
Sectors that are closely related to Coca-Cola Hellenic Serbia are sugar manufacturing,
transport and trade. The company expense of sugar relates to 450 jobs
bs at the sugar
manufacturing level, and indirectly to 110 jobs at the farmer level. Regarding the
transport sector, the upstream transport of raw materials and the downstream
eam transport of
finished products relates to 200 jobs. The trading parties, involved in selling
g the Coca-Cola
products to the consumer, are associated with 13,000 jobs: 11,000 jobs in HoReCa
ReCa sector (i.e.
immediate consumption), and 2,000 jobs in off trade (i.e. future consumption).
ion). Coca-Cola
value added per job is above the republican average.
The net VAT payment related to Coca-Cola payments is EUR 76 million, assuming that 100% is paid by all parties involved.
28
SCENARIO
ANALYSIS
5
One of the objectives of economic impact analysis is to enable management to analyse the
broader socio-economic impacts of its hypothetical decisions. These scenarios give useful
insights into „what if“ situations since the policy changes of the company and government (e.g.
change in tax regime) or changes in the economic climate create new economic environment.
In this Report, one hypothetical scenario analyses what would have happened if Coca-Cola
had decided in 1967 to import rather than to locally produce in Serbia.
5.1 Co-financing local production
Like every business, Coca-Cola bottlers are subject to external economic pressures which
determine whether or not to remain in business. Imagine a situation where:
• Local Coca-Cola Hellenic Serbia production is replaced by importation of all final Coca-Cola products;
• Coca-Cola Hellenic Serbia becomes a trade company of imported Coca-Cola products, while
The Coca-Cola Company remains the marketer of the Coca-Cola products in Serbia.
These changes would have a profound effect on the Serbian economy. The value added
generated by the Coca-Cola system would tumble by about EUR 51 million (or
0.17% of GDP). This means lower household incomes, corporate profits, and tax revenues.
The decrease of salary re-spending (i.e. induced or 3rd round effects) would lower the
value added with an extra EUR 17 million. Employment would fall by 0.09% of the labour
force, with the loss of some 2,700 jobs. These numbers indicate the fillip that Coca-Cola
provides to Serbian stakeholders up and down the value chain, including government
and households. The induced effects leads to an extra job decrease of 780.
million
eur
employment fall
30
5.2 Other possible scenarios
In addition to the provided scenario, other scenarios could be developed which might be
of interest to Coca-Cola and its stakeholders:
• Change in tax regime (e.g. introduction of a „sugar tax“);
• Increase of home consumption at the expense of out-of-home (e.g. restaurant) consumption;
• Extension of production or distribution facilities;
• Increase of local sourcing;
• Impact of the Coca-Cola system on different income groups;
• Breakdown of employment effects into skilled and unskilled labour;
• Breakdown of results on a state or province level;
• Energy consumption or CO2 per job or Euro value added in Coca-Cola value chain.
• Water consumption per job or Euro value added in Coca-Cola value chain.
31
COCA-COLA AND
LOCAL COMMUNITY
6
In addition to providing “private goods” to consumers in the form of soft drinks, and generating
profits for itself and for its suppliers and distributors, Coca-Cola also provides “public goods”
to Serbia as a whole, irrespective of whether or not the Serbian people purchase or use the
company products. These public goods take numerous forms but include “Corporate Social
Responsibility” (CSR) activities in such areas as environmental protection, education, helping
socially endangered groups, promoting active life and sponsorship of local activities including
sports and cultural events.
Coca-Cola system spent over EUR 223,000 on such programs in 2010.
eur
invested in local communities in 2010
Particularly notable in this regard was Coca-Cola’s emphasis on water management, including
in its own production process. Coca-Cola system supports a number of educational programs
that revolved around the water management theme, including “Danube Day.” At the same
time, the bottlers have reduced the amount of water they use in their own facilities. It is in
Coca-Cola’s interest to ensure the sustainability of national watersheds. Besides, through its
active engagement in this area, the company also supports broader national environmental
objectives.
Water management is among the most significant environmental issues that nations will face
in the 21 century, and by promoting more efficient water use the Coca-Cola system is contributing
to a major public good.
33
CONCLUSIONS
7
The following conclusions can be drawn from the analyses reported on here:
1. Coca-Cola is a significant contributor to the Serbian economy:
EUR 25 million direct value added equivalent to 0.08% of GDP;
b. EUR 345 million economy-wide value added equivalent to 1.18% of GDP;
c. Every Euro of value added at Coca-Cola relates to 13 Euros of value added in the broader economy
a.
of Serbia.
2. Coca-Cola contributes substantially to the tax income of Serbia:
a. EUR
3 million Coca-Cola tax payments are 0.06% of total tax income
b. EUR 107 million economy-wide tax income equivalent to 1.6% of total
tax
income;
c. Every Euro of tax payments at Coca-Cola relates to
35 Euros
of tax
payments in the broader economy.
3. Coca-Cola provides high-quality employment and is associated with a substantial
number of jobs in the wider economy:
a. High quality workforce of more
than 1,300 with a value added per job of EUR
15,000, which is 1.5 times the GDP per Serbian worker;
b. Total employment of almost 18,500 in the economy associated with the
Coca-Cola system in Serbia is 0.62% of the labour force.
c. Every job at Coca-Cola relates to 13 indirect jobs in the broader economy.
4. The scenario analysis leads to the following conclusions:
a. When substituting Coca-Cola’s local operations by imports, the Serbian economy would
suffer a loss of EUR
51 million (or 0.17% of GDP) in value added and more than 2,700
jobs (or 0.09% of the labour force).
This study gives a detailed account of the socio-economic impact of the Coca-Cola
system in Serbia (both direct and indirect). With the economic model applied, the study
gives a scope of impact of the system in the community in which it operates, as well as
the impact its business has on relevant institutions, partners, employees, consumers and
the whole of economy.
35
For more than 40 years Serbia is our home and that's why its future is our responsibility also. Every day, with
our quality, stability and openness to the world - we create secure future for all people of this country. We're
here to stay and with our every deed we make our home a better place to live.