Orientacny den

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New Challenges for Future Growth in SLOVAKIA
Radovan Pekník Public Affairs Communication
Manager
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Key Messages

• Globalization FDI in Slovakia
• Positive multiplier effect of beverage industry
  on other sectors in creating job opportunities
• Moving quality standards from products,
  processes, to people, environment, corporate
  social responsibility
• Partnership and permanent dialogue with all
  stakeholders including consumers, customers,
  industry, government, local government, NGO etc.

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Coca-Cola Is A Global System

• 119 years of Coca-Cola history
• Produced in more than 200 countries of the
  world
• Coca-Cola is second world known word after OK!
• 94 of world population know Coca-Cola trademark

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Coca-Cola Hellenic Bottling Company

• Merger of two anchor bottlers in August 2000
• Coca-Cola Beverages Plc Hellenic Bottling
  Company SA
• Now worlds third largest anchor bottler
• Operating in 26 countries
• More than 35 000 employees
• Over 7 billion litres annually
• 500 million consumers

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Coca-Cola Hellenic Bottling Company
Armenia, Austria, Belarus, BosniaHercegovina,
Bulgaria, Croatia, Czech Republic, FYROM, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania,
Moldova, Nigeria, Northern Ireland, Poland,
Romania, Russia, Slovak Republic, Slovenia,
Switzerland, Ukraine, Yugoslavia,
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Logistics
1 Production Plant4 Sales and Distribution
Centers
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Per Capita Consumption linked to Economic
Development of Regions
CSD 500 per capita CSD200 per capita
CSD 100 per capita
CCHBC Market share 14,6 16,6 12,2
CC SVK14 per capita
CC SVK 40 per capita
CC SVK 150 per capita
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Production Program
Carbonated Soft Drinks
Water
Juices and Nectars
Ice Tea
Ice Coffee
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Cumulative Investment Growth and Structure in
Million USD
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Local Coca-Cola System

• 80 of all expenses of Coca - Cola Beverages
  Slovakia come from local Slovak suppliers
• 90 of all beverages sold in Slovakia are
  produced locally
• Intercompany sale to other countries is
  increasing and currently is around 60 of the
  total local production

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More than 10 Years of Experience in Slovakia

• Coca-Cola established local business in 1993
• Production Luka Plant started production in 1994
• access to water source
• small production premises was already in place
• infrastructure (high-way in construction) was
  planned
• Greenfield project finalized in 1999 Production
  Distribution Center in Luka

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Luka Complex
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More than 10 Years of Experience in Slovakia

• In 2000 cumulative investment exceeded 100 mil.
  USD,
• Coca-Cola became key food investor in Slovakia
• In 2001 Coca-Cola Beverages Slovakia was awarded
  by National Prize for Quality
• In 2004 Coca-Cola Beverages became a training
  centre for SAP for the whole CCHBC group

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Positive Multiplier Effect of Beverage Industry

• Direct job opportunities
• Indirect employment through multiplier effect
• Education and training programs for employees
• Moving goods, services and people around the
  region
• Creating training centers for other countries
• Implementing business ethics

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Should Foreign Direct Investment require Special
Treatment from the Government ?

• Yes, in selected regions or defined economic
  sectors
• BUT
• Rules must be clear transparent for any
  potential investor
• Foreign and local investors must be treated
  equally
• No discrimination of existing FDI versus new
  investors

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How Should Be Quality Perceived in the Company?

• Commitment in each part of the business enabling
  to reach the total quality of product, customer
  service, operations, execution in marketplace and
  people.
• Key Business Indicators linked to quality at all
  levels
• Integrated teams in production
• Rotation of people among different departments
• Moving admin staff to marketplace
• Take care for outlets where you go for shopping
  

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Why is Permanent Dialogue Crucial?

• Consumers, customers, other industries,
  government, local government, nongovernmental
  organizations will be more and more demanding to
  our products, services and how we act or
  communicate.
• Plant tours to production facility
• Dedicated projects Danube Initiative, Football
  School Cup, Coca-Cola Pop Star
• Taking over shared responsibility on packaging
  waste

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What are the Challenges for Future Growth?

• Commitment
• Teamwork
• Accountability
• People
• Quality
• Integrity