Coca‑Cola HBC Russia General Manager Stefanos Vafeidis presented a study of Coca‑Cola Russia’s contribution to the economy of the Russian Federation over 2013-2016 at the Eastern Economic Forum, which concluded recently in Vladivostok.
According to the study, the Company has invested US$5.7 billion in the Russian economy since beginning its operations in Russia. The study was prepared by the Socioeconomic Research Lab at the National Research University Higher School of Economics. Vafeidis said in his presentation that the Coca‑Cola System in Russia’s business was fully aligned with the strategic guidelines of the country’s social and economic policy.
“Unlike regular sustainability or corporate social responsibility reports by major corporations, this study shows The Coca‑Cola System in Russia’s comprehensive impact on the country’s economic development, environmental protection and its social development,” said Vadim Radaev, Doctor of Economics and the leader of the team that produced the study.
Economists have confirmed that The Coca‑Cola System in Russia is one of the largest investors in this country. Over the years of doing business in Russia, the Company has invested US$ 5.7 billion in the nation’s economy, or 25% of the total investments in the soft drink industry. The Company, its suppliers and customers annually produce a total added value of RUB 216.4 billion, or 0.3% of the Russian GDP. In addition, The Coca‑Cola System in Russia is making a significant direct contribution to the Russian government revenue, having paid RUB 41.6 billion in taxes over 2013–2016.
The Coca‑Cola System is a major Russian employer. The Company currently employs 9,600 Russian citizens directly, and has created approximately 66,000 associated jobs.
In addition, the Company sourced more than 90% of all direct purchasing (not including beverage base) from Russian suppliers last year, and expects the local share of materials to get closer to 100% in the future.
As for environmental protection, the Company invest its resources in four key areas: water supply and water conservation, energy conservation, waste recycling and fighting climate change. It’s also investing significant amounts in social development and support of local communities. The Company allocated RUB 865.4 million for these purposes during 2013–2016.
“The analysis indicates that The Coca‑Cola System in Russia’s operations are fully aligned with the strategic guidelines formulated by the Russian Government that define the country’s economic and social policy,” said Stefanos Vafeidis, General Manager, Coca‑Cola HBC Russia said in his presentation to Forum participants.