On November 25, Coca‑Cola in Belarus presented the study on the role of Coca‑Cola system in economic development of the country to the general public.
As a socially responsible business, Coca‑Cola annually presents the results of the analysis of the company’s activities in the field of sustainable development according to GRI (The Gobal Reporting Initiative) standards. Presentation of the study on the result of the activities is a common thing among transnational companies, which corresponds to the principles of open and transparent business.
“This is an epochal date. For 25 years we have brought a new life to soft drink market. Coca‑Cola was the first and the biggest foreign investor in Belarus. The company invested colossal funds in building its own production capacity”. Alexander Denisov, General Manager of Coca‑Cola HBC Belarus
The production of Coca‑Cola products in Belarus was launched in 1994. Now there are a lot of branch offices all over the country: in every regional center, as well as in Baranovichi and Babruisk. Over 25 years, Coca‑Cola in Belarus made a significant contribution to a number of key economic indicators of the country, directly affecting the value of GDP, the volume of tax payments to the budget, the structure of employment, the number of purchases on the domestic market, as well as the flow of foreign direct investment to Belarus.
According to the study, due to the direct and indirect effect, the Coca‑Cola System in Belarus provided 0,25% of Belarus’ GDP in 2018. Effective performance of the company contributed to the growth of the country’s GDP in comparison with 2017.
“The food industry has a key position in the economy of Belarus. This is confirmed by the fact that its contribution to industrial production was 22,8% (5,8% of the country’s GDP). We see the Coca‑Cola System’s contribution to food industry in Belarus. It is particularly noticeable in Minsk region: Coca‑Cola products account for 6% of the total food production. Such high results are achieved because of company’s large-scale investments in the modernization of production”. Andrei Roschupkin, first Deputy General Director of Coca‑Cola HBC Belarus
The report also provides data on the amount of Coca‑Cola’s taxes in Belarus. The total amount of tax payment reached more than 47 million BYN. It is necessary to note the dynamics of growth of tax payment to the consolidated budget of the country — in 2018 it was 41,7 million BYN, that is 39% higher than last year. The company’s structure of tax payment includes regular contributions to Social Protection Fund, which is important for maintaining the existing system of pensions and benefits in the country.
“The amount of taxes indicates a greater tax burden on the company than the average for the economy. For example, the amount of payment for control identification marks is 7,8 million BYN, that is almost equaled the amount of income tax, 7,9 million BYN”. Andrey Roshupkin, first Deputy General Director of Coca‑Cola HBC Belarus
The study on the influence of the Coca‑Cola System on the economy of Belarus in 2018 also shows that the company is an important partner of Belarusian business: the percentage of purchases of Coca‑Cola in Belarus from local suppliers was 65,4%.
The activity of the Coca‑Cola System also creates a big indirect economic effect: 1 ruble of added value in the Coca‑Cola System creates another 1,81 rubles in the economy. It contributes to the growth of GDP and employment rate in food industry. So, 1 ruble of wage paid in the company gives 5,8 rubles of wage in the economy.
The Coca‑Cola System’s indirect contribution to GDP of Belarus is 192 million BYN, where 0,5 million BYN is generated because of charity. Thus, along with its contribution to the economy of Belarus, the Coca‑Cola System implements significant social, ecological, educational and sponsorship projects.
Among significant initiatives implemented by the Coca‑Cola System in Belarus there is a project “Save Yelnya Together!” on restoration of one of the largest swamps in Europe, a Republican Cleanup Campaign on waste collection, organized annually on a regular basis, support of many other social and ecological projects. The company’s significant contribution to business education of the youth through Youth Empowered international educational program, which is aimed at developing business skills and learning tools for personal growth.
“Today we want to show the results of our 23-year cooperation to other commercial companies to engage them in joint charity projects on rehabilitation and treatment of sick children. Since 2012, Coca‑Cola HBC Belarus supports two rehabilitation and health-improving sessions for children “Happy Hearts” and “Rainbow of Hope”. The participants are children with cardiovascular pathology and children who underwent oncological diseases. We can’t ignore one more joint charitable program “Our hearts to sick children”. Every year on Christmas and New Year Eve we congratulate kids who are forced to spend winter holidays in hospitals for various reasons”. Marina Borovko, Public Affairs and Communications Manager of Coca‑Cola HBC Belarus