The Socio-Economic Impact Study by Steward Redqueen showed that in 2017 the Latvian consumers spent 65 million Euros on Coca‑Cola products. 45 million Euros or 70 percent of that stayed in the local economy as taxes, salaries and profits.
The General Manager of Coca‑Cola HBC in Baltics Konstantin Choukchoukov said that in Latvia the contribution to the total national tax revenues and GDP is the highest in absolute amount from the three Baltic Countries the unit operates in. “We are proud to support the Latvian economy with as much as 45 million Euros annually” added Choukchoukov.
45 million Euros value as taxes, salaries and profits created by Coca‑Cola System activities in Latvia last year is equal to 0.18% on Latvia’s GDP. 24 million out of the 45 million Euros are tax payments, equal to 0.3% of the total national tax revenues. The 1383 jobs supported in Latvia last year is 0.16% of total employment, and every job at the Coca‑Cola System supported 10 additional jobs in the overall economy.
Consumers spent a total of 65 million Euros on Coca‑Cola products in Latvia, and of every Euro spent 70% stays in the local economy. Out of 65 million Euros 11.3 million were government taxes (VAT); 24.3 million were margins for outlets which drives trade impact; 29.3 million Euros were Coca‑Cola HBC local sales revenues plus 1.7 million Euros Coca‑Cola Company expenditures which drives local sourcing impact.
Most jobs supported by the Coca‑Cola System are 1151 employees working for trade partners and trade partners’ suppliers. 120 people work full-time directly for Coca‑Cola HBC in Latvia and 111 jobs are supported within suppliers and suppliers’ suppliers.
In Baltic States the Coca‑Cola System created 134 million Euros of value added and supported 4083 jobs in total, most of them in trade sector.
The study that provides insights into the value added impact and employment impact of the Coca‑Cola System in Estonia, Latvia and Lithuania in 2017 was conducted by Steward Redqueen, a Netherlands company advising organizations on impact and sustainability. The study quantifies the Coca‑Cola System’s impact along its value chain including suppliers of key ingredients and services and suppliers’ suppliers, The Coca‑Cola System (including The Coca‑Cola Company and Coca‑Cola Hellenic Bottling Company) and trade partners with suppliers of trade. The purpose of the study was to assess how the Coca‑Cola System’s business impact the economy and vice versa.
The Coca‑Cola System in the Baltic States include the value chain created by two companies: Coca‑Cola Baltic and Coca‑Cola HBC Baltics.