Poverty Footprint Study on how the Coca Cola - Oxfam America

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The Coca-Cola/SABMiller value chain in Zambia Zambian Breweries procures sugar from Zambia Sugar, a company based in southern Zambia with the second-largest sugar mill in Africa, and one of only two mills in Zambia. Zambia Sugar purchases the sugar it mills from its own farms as well as outgrower farms. Zambian Breweries purchases approximately 7 percent of Zambia Sugar’s production—and approximately 70 percent of this is used in Coca- Cola products. Zambian Breweries also purchases the other inputs into the process, such as bottlecaps, Figure 5: Map of the Coca-Cola/SABMiller value chain in Zambia WITHIN ZAMBIA OUTSIDE ZAMBIA RAW MATERIALS Sugarcane Zambia Sugar Own Estates Independently Owned Large and Medium Estates Smallholder Programs Resin Multiple International Companies from South Africa, South Korea, US and India Carbon Dioxide Afrox South Africa Aluminum Multiple Asian Companies $500 SUPPLIERS Sugar Mill Zambia Sugar Water Underground/ Treated Carbon Dioxide Afrox Zambia Vehicles Southern Cross Motors PET Preforms Boxmore South Africa Caps Boxmore South Africa Labels Nampak South Africa Plastic Wrap Boxmore South Africa Cardboard Trays Nampak South Africa Plastic Crates Nampak Crowns Nampak Cardboard Trays Nampak Concentrate The Coca-Cola Company Filtration Chemicals Various Countries Machinery Multiple Companies South Africa Vehicles CSM Holdings South Africa Glass Bottles SABEX United Arab Emirates Cans Kgalagadi Botswana 34 Exploring the links between international business and poverty reduction plastic crates and labels. Coca-Cola products are produced in two bottling plants in Lusaka and Ndola and distributed across the country through a network of independent distributors, depots, truckers and micro distribution centers (MDCs). The Coca-Cola system’s retail channels are varied and include supermarkets, hotels, bars, restaurants, petrol stations and small kiosks on street corners, known locally as ntembas, and in markets. In Zambia, Coca-Cola products are sold to consumers from more than 25,000 outlets. SABMiller BOTTLERS Zambian Breweries (SABMiller) Zambian Bottlers (Lusaka) Northern Breweries (Ndola) DISTRIBUTION Distribution Depots MDCs c. more than 1,000 Drivers (Employees) Owner-Drivers RETAILERS General Trade Small Residential and Market Shops Informal Trade (Hawkers) Petroleum Service Station Supermarkets Returnable Glass Bottles (RGBs)
The Coca-Cola/SABMiller value chain in El Salvador The value chain in El Salvador follows a very similar structure. Sugar for the production of The Coca-Cola Company beverages in El Salvador is purchased by SABMiller’s bottlers bottling plant, Industrias La Constancia, primarily from two sugar mills: Central Izalco and El Angel, as well as diverse inputs from other suppliers. ILC’s bottling plant in the country is located just outside San Salvador in Nejapa. Coca-Cola products Figure 6: Map of the Coca-Cola/SABMiller value chain in El Salvador WITHIN EL SALVADOR OUTSIDE EL SALVADOR RAW MATERIALS Sugarcane Formal Public Corporations Cooperatives Independent Smallholders Resin/Virgin Plastic Costa Rica Aluminum Costa Rica SUPPLIERS Sugar Mills El Angel Central Izalco CASSA Labels Labels S.A Water Underground/ Treated Shrink-wrap IPSA PET Preforms ALPLA Honduras PET Preforms Proveedores de Servicios Guatemala Caps Envases Universales Mexico Carbonic Gas CARBOX Guatemala Cans ECA Guatemala Sugar Distributors Dizucar Filtration chemicals COMERSA- Distributors Cardborad CAJAS Y BOLSAS Vehicles DIDEA Local Dealer (HINO Japan) Rensica Local Dealer (US) Concentrate The Coca-Cola Company Machinery KHS Germany Glass Bottles VIGUA Guatemala Crowes PLIHSA Honduras Six-Pack Wrap HI -CONE US Plastic Crates PILHAS/SABMiller Honduras are then distributed through ILC’s own distribution depots by its own trucks and independent owner- drivers and by third-party distributors to an estimated more than 64,000 customers, including small retail shops and large supermarkets. SABMiller BOTTLERS Industrias La Constancia (SABMiller) Sparkling Beverages Plant Nexapa Juice and Water Plant San Salvador DISTRIBUTION 5 Distribution Centers Direct Distribution 175 Drivers (Employees) 57 Owner Drivers Indirect Distribution 33 Small Warehouses (Urban/Rural) 24 Wholesalers (Rural) 343 Warehouses (Urban/Rural) RETAILERS Supermarket Traditional Small Retailers Informal Trade Returnable Glass Bottles (RGBs) Exploring the links between international business and poverty reduction 35
Page 1 and 2: Exploring the links between interna
Page 3 and 4: Contents About the organizations 4
Page 5 and 6: The Coca-Cola Company sustainabilit
Page 9 and 10: Muhtar Kent Chairman and Chief Exec
Page 11 and 12: Graham Mackay Chief Executive SABMi
Page 13 and 14: ase of the pyramid, achieve a devel
Page 15 and 16: Recommendations for follow-up actio
Page 17 and 18: with the community includes not onl
Page 21 and 22: The role of business in development
Page 23 and 24: It is projects such as this that co
Page 25 and 26: Zambia El Salvador Our approach Oxf
Page 29 and 30: Six percent of the population lives
Page 31 and 32: SABMiller’s role as bottler In Za
Page 33: Zambia El Salvador Figure 4: The Co
Page 37 and 38: Zambia El Salvador In the absence o
Page 39 and 40: Table 8: Aggregate employment impac
Page 43 and 44: In all markets, with few exceptions
Page 45 and 46: Figure 9: Auditing in The Coca-Cola
Page 47 and 48: employment include some workers in
Page 49 and 50: El Salvador The highest wages in th
Page 51 and 52: Many people are hired during the su
Page 53 and 54: Investment in training and capacity
Page 55 and 56: The union is an excellent organizat
Page 59 and 60: Crime in El Salvador El Salvador fa
Page 61 and 62: 0 [When] we get out at night, we ar
Page 63 and 64: Mill work is also physically strenu
Page 65 and 66: 0 Table 10: Sales by packaging type
Page 67 and 68: Table 12 Water use ratios at SABMil
Page 69 and 70: The Coca-Cola Company Sustainable P
Page 71 and 72: Product portfolio The Coca-Cola pro
Page 75 and 76: 0 Civil society groups encourage co
Page 77 and 78: According to The Coca-Cola Company
Page 79 and 80: Engage with NGOs and financial grou
Page 83 and 84: We also wish to thank the many stak
Page 85 and 86:
43. This was developed by the Unive
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Poverty Footprint Study on how the Coca Cola - Oxfam America

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