Poverty Footprint Study on how the Coca Cola - Oxfam America

Zambia
El Salvador
Figure 4: The Coca-Cola/SABMiller bottlers value chain and its key players in these markets
Zambia Sugarowned
estates,
independently
owned large
and medium
estates, and
smallholder
programs.
Zambia
Sugar is the
sole supplier
of sugar to
Zambian
Breweries
for sparkling
beverages.
Key terms in sugarcane production
Nampak
Zambia is the
sole supplier
of high-density
polyethylene
crates and
crowns used
with returnable
glass bottles.
Afrox Zambia
is the supplier
of carbon
dioxide used in
bottling. Other
supplies are
imported.
Sugar workers Sugar mills Other
suppliers
Sugar is
procured by
sugar mills
from three
sources:
formal public
corporations,
cooperatives
and
independent
smallholders.
Producers hire
farm workers
independently,
mostly on an
informal basis.
El Angel and
Central Izalco
are the sole
suppliers of
sugar to ILC
for sparkling
beverages.
Cajas y Bolsas
is the sole
provider of
cardboard
packaging
materials.
LABELS is the
sole provider
of beverage
product labels.
Other supplies
are imported.
Zambian
Breweries
(ZB), of which
SABMiller has
an 85 percent
ownership
stake, is the
largest bottler
of Coca-Cola
products in
Zambia, and
operates
two facilities:
Zambia
Bottlers in
Lusaka and
Copperbelt
Bottlers in
Ndola.
SABMiller
bottlers
Industrias la
Contancias
(ILC) is the
sole bottler
of Coca-Cola
products in El
Salvador, and
operates two
facilities: the
ILC sparkling
beverage
bottling plant
in Nejapa (a
municipality of
San Salvador)
and the ILC
water and
juice plant in
San Salvador.
The latter is
outside the
scope of this
study because
its production
of Coca-Cola
is minimal.
Sugar harvester Laborer paid to harvest the crop
The Coca-Cola
Company
manufactures
the concentrate
that goes into
all its products.
The
Coca-Cola
Company
The Coca-Cola
Company
manufactures
the concentrate
that goes into
all its products.
Sugar worker Laborer in sugar farms, includes harvesters and other types of workers
Sugar farmer Mainly used for smallholders who may also work their own land
Sugarcane grower or producer Term used for all types of sugar farm/estate owners
Zambian
Breweries
runs its own
distribution
centers.
Sparkling
beverages are
also distributed
through a
variety of
independent
channels:
distributors
(agents),
wholesalers
(strategic
sales depots)
and micro
distribution
centers.
Both
independant
and ZB truck
drivers are
involved in
distributing
beverages.
Distributors Truck Drivers
ILC operates its
own distribution
centers and
cross-docks.
Independent
distributors use
three routes
to market:
wholesalers,
smaller
distributors
and small
warehouses.
ILC employs
drivers and
independent
owner-drivers.
Coca-Cola
products are
sold through
25,000 retail
outlets,
including
informal
outlets,
supermarkets,
hotel bars,
restaurants,
fast food
restaurants,
kiosks
(ntembas),
markets and
petroleum
stations.
Retailers
Coca-Cola
products are
sold through
64,000 retail
outlets. The
vast majority
of retail outlets
are small
shops located
in private
residences.
Other channels
include bars,
food chains,
restaurants,
service
centers,
supermarkets
and gyms.
Exploring the links between international business and poverty reduction 33