Filenews 10 March 2022
By Giorgos Lambiris
An unknown parameter and with a communicative background is apparently included in the announcement – decision of Coca-Cola HBC, to announce that it is in line with the decision of the American group to cease its activities in Russia.
According to the Capital.gr's secure information, Coca-Cola HBC is not actually shutting down the 10 plants it maintains in Russia, despite the fact that this is implied, as the statement it issued does not provide further details on the matter. The fact that the plants continue to operate normally, was quick to confirm sources of the Coca-Cola HBC group, to which we contacted.
"There are stocks capable of covering up to two months of production"
In fact, the same sources confirm positively our relevant question as to whether there are stocks of soft drink concentrates in Russian factories capable of covering for a sufficient period of time the production activity of Coca-Cola HBC in this country. This practically means that the company maintains in Russia stocks of raw material, which are then converted into soft drink, where again according to the same sources they give it the ability to cover its production activity for up to two months.
Indeed, as we are informed, The Coca-Cola Company has always obliged its subsidiaries to maintain stocks of concentrate so that they can meet its needs in exceptional events, such as the war in Ukraine in this case.
Movement to subside the noise
In essence, therefore, The Coca-Cola Company has announced that it is proceeding to discontinue the supply of concentrate to Russia, but this does not in any way mean that the production activity in the country stops. Market sources with knowledge of the subject are mainly interpreted as a move to calm the noise and exhortations of citizens to boycott Coca-Cola's products in Russia, following the general outcry that had erupted in the previous days both against Coca-Cola and against other multinationals such as McDonald's, on the grounds that they had not reacted to the violent Russian invasion of Ukraine and continued unhindered to operate in Russia.
In fact, the impact of the reactions on the part of the public and on social media was particularly noticeable, as the hashtags #BoycottCocaCola and #BoycottMcDonalds were found on twitter trends.
It should be noted that Russia reflects 2% in the operating income and profits of Coca-Cola Company, which retains 23.2% of Coca-Cola HBC, while 23.3% is maintained by the Kar-Tess Group of the David and Leventis families, according to data concerning its shareholding composition and reflected in the Athens Stock Exchange.
The entire announcement of Coca-Cola HBC
Below is the entire announcement of Coca-Cola HBC as it was released Wednesday morning:
"Following the recent announcement of The Coca-Cola Company to suspend its operations in Russia, we respect the decision and are in full alignment for its implementation. We will carefully consider the interests of our employees, customers and suppliers in Russia.
Our relationship with The Coca-Cola Company remains strong and we continue to work closely together in the rest of our markets.
Our hearts are with all the people affected by the unimaginable tragedy in Ukraine. We continue to provide support on the ground in cooperation with the Red Cross. We are grateful to all our employees, especially those who have provided personal support. We join our voices with that of the many who desperately want peace to return to Ukraine."
