Soft drinks a major boost to SA economy

Commissioned by Coca-Cola South Africa (CCSA) to establish the impact of the Coca-Cola system in the local economy, the study found that soft drinks were almost twice as important to informal businesses as bread, which was ranked second.

The study found that:

• Nine out of 10 small business owners surveyed said that Coca-Cola products served as a major draw card for attracting people to their businesses;
  
• the Coca-Cola system (which includes the company and its bottling partners) employs 68,000 people directly and indirectly through its value chain;
  
• the Coca-Cola system contributed 1,4% to the country's Gross Domestic Product, 0,9% to total worker remuneration, 1,1% to total employment and 1,1% to direct taxes.

Professor Carel van Aardt, one of the two academics who conducted the study, said the Coca-Cola system in the country was an important direct contributor to economic turnover, intermediate consumption, worker compensation, employment and taxes. In addition, the system was also an important indirect initiator of multiplier effects through its upstream and downstream integration with other businesses in the country.

“The Coca-Cola system's involvement in strengthening SMMEs in the informal sector is an important contributor to entrepreneurship and small business development in the country. Few companies are in this category.

“Coca-Cola is a really big player in South Africa by virtue of its contribution to employment. Perhaps only some very large companies have a bigger impact,” said Professor van Aardt.

CCSA Public Affairs Director welcomed the study's findings, which are in line with those of a similar study conducted in 2004.