THE COCA-COLA SYSTEM IN BULGARIA INVESTS BGN 131 MILLION PER YEAR IN BULGARIAN BUSINESS

The economic impact of the Coca-Cola System in Bulgaria is expressed in value added of BGN 640 million

Highlights for 2021:

• The economic impact of the Coca-Cola System in Bulgaria is expressed in value added of BGN 640 million
• The system generates 1% of the tax revenues in the country
• Contributes BGN 41 million in taxes to the budget and another BGN 237 million indirectly, which is equal to 1/2 of the state budget for culture or the annual expenditures for schooling about 95,000 students
• Every BGN 1 spent on Coca-Cola drinks leads to BGN 0.75 in revenue for Bulgaria
• Every 1 workstation in the System supports 4 external workstations

In 2021, the Coca-Cola System in Bulgaria has bought goods and services worth over BGN 131 million from local suppliers, which strengthens its support for the Bulgarian economy. This is reported by the Corporate Social Responsibility Report for 2020-2021, presented by the companies in the group today. Its economic impact in the past year in Bulgaria is expressed in value added of BGN 640 million. Apart from the direct contribution, every 1 job in the System maintains 4 external jobs, and every BGN 1 spent on Coca-Cola drinks leads to BGN 0.75 of income for Bulgaria.

The group, whose economic contribution amounts to 0.5% of the country's GDP for 2021, has managed to already meet some of its long-term goals in the field of sustainable development, the report also shows 100% of the packaging of all Coca-Cola products is now recyclable, while the company reports a reduction in direct carbon emissions by 30%, saving over 90 483 tons of carbon emissions from its local activities for 2020 and 2021. It has also achieved a record reduction of water consumption in the plants in Kostinbrod and Bankya – by 16%, and the company is already a member of the Alliance for Water Stewardship (AWS).

"Coca-Cola Hellenic's geographical footprint already covers 29 countries, and in each of them we believe that the responsibility of upstanding companies is not only to offer excellent products and services, but also to contribute sustainably to our common better future. I am glad that thanks to our 24/7 portfolio and the efforts of all nearly 3 000 colleagues in the Coca-Cola family in Bulgaria, we were able to adapt effectively to the new reality and at the same time fulfill our commitment to support our team, over 40 000 customers and partners and society at large. The achievement encourages us to make even bolder commitments, namely, to achieve net zero emissions by 2040, and to collect and recycle 100% of the packaging we place on the market by 2030. The goals are ambitious but achievable. It is no coincidence that this year Coca-Cola HBC was identified as the most sustainable beverage company in Europe and in the top 3 in the world according to the Dow Jones Index", said Juerg Burkhalter, CEO of Coca-Cola HBC Bulgaria.

"For us, as for other industries, the past two years have been full of challenges. Challenges that together we turned into opportunities. We have already taken the first significant step in implementing our World Without Waste strategy, and our next big goal is for our packaging to be made up of at least 50% recycled material by 2030. And because we know from experience that innovation is at the heart of progress, we continue to build on our sustainable solutions. Our new “tethered” caps on Bankia mineral water bottles now facilitate the collection and recycling of the entire package, and the KeelClip cardboard technology used on a multipack of 6 cans will save 2 tons of plastic shrink-wrap in Bulgaria per year. We do not stop here – the non-alcoholic industry in our country has reduced by 15.21% the calories in its products for the last 5 years. On average, there is 6.7% less sugar in 100 ml of beverage in the sector. Thus, consumers consumed 3,497 tons less sugar", said Dora Strezova-Nikolova, CEO of Coca-Cola Bulgaria.

Contribution to the local economy for 2021

The System in Bulgaria also generates 1% of the country's tax revenues, contributing BGN 41 million in taxes and indirectly contributing another BGN 237 million, of which BGN 143 million is value added tax. The amount paid into the state budget is equal to 1/2 of the state budget for cultural activities per year or the annual expenditures for education of about 95 000 students.

Behind the 355 million liters of drinks produced by the company, there are a number of innovations, as well as infrastructure projects in its plants in Kostinbrod and Bankya worth a total of BGN 12 million.

Production and Supply Chain

In a time of unprecedented economic hardship caused by the coronavirus pandemic, Coca-Cola is consolidating its commitment and efforts to meet its sustainable development goals. In 2021, the company achieved a reduction in the total amount of waste from its production processes by 23% compared to 2019, and 48% of energy used is from renewable and clean sources. Production at the Bankya plant relies entirely on 100% green energy. Carbon emissions per unit of beverage produced have also been reduced by 37% compared to 2019, with the energy required to produce 1 liter of beverage going down 10%.

Community support

The Coca-Cola System team believes that quality education, developing the potential of young people and preparing them for a successful career path is a key step towards a better future. The company's experts annually support young people in their professional development through specialized webinars, career afternoons and trainings to increase personal skills and business competencies in the areas of sales, finance, business planning, project management and others.

In the period of 2020-2021, they have devoted hundreds of hours to increase the motivation, knowledge, and skills of nearly 10 000 young people under the Youth Empowerment Program, as well as to support a number of environmental and charitable initiatives as volunteers.

You can find the full text of the Coca-Cola System in Bulgaria Sustainability Report 2020-2021 here