Santo Domingo. – The Coca-Cola Company and its bottling partner in the country, Bepensa Dominicana, presented the report “Economic, Tax, and Social Contribution of the Coca-Cola System in the Dominican Republic, 2016,” prepared by the consulting firm PwC, which summarizes the contributions of its operations in the country.
The Coca-Cola System contributes to the Dominican Republic's economy through its core businesses, supply chain, distribution channels, payroll, and investments. The data was collected in 2016, processed and analyzed in 2017, and final publication was completed in 2018.
Economic contribution
Economic contribution is quantified in two main indicators: gross value added (GVA) and employment. GVA is the contribution of an organization or sector to a country's gross domestic product (GDP). Employment is measured in terms of the number of people employed.
The total economic contribution of the Coca-Cola System is the sum of both indicators and amounts to 17,280 jobs and $186 million of GDP in the Dominican Republic for 2016. This is equivalent to 0.4% of total employment in the Dominican Republic and 0.3% of the country's GDP for 2016. In this regard, for every direct job, 5 indirect jobs were generated in the broader Dominican economy.
Tax contribution
In 2016, the Coca-Cola System assumed or collected seven different taxes in the Dominican Republic. Its total tax contribution was $30 million. This amounted to 0.3% of total tax revenue in the Dominican Republic in 2016.
In this way, the System paid $9 million in taxes levied on the entities in its system—that is, assumed taxes—and collected an additional $21 million in taxes for the government of the Dominican Republic.
In 2016, for every $100 in corporate income tax, the System assumed $570 and collected $1,599 in other taxes on behalf of the government of the Dominican Republic.
The total tax rate (taxes assumed as a percentage of pre-tax profit) was 81.8%. This means that for every dollar of pre-tax profit assumed, $0.81 cents in taxes was paid.
Social contribution
The Coca-Cola System leads, participates, and contributes to the Dominican Republic's national development goals through a series of social and environmental initiatives.
Among the main achievements highlighted during the event were that since 2015, the Coca-Cola System has been water positive, returning more than 100% of the water used in its final products to nature. This is in addition to the recent water access programs launched in 2018, as well as the "World Without Waste" initiative. The latter's objectives are to collect the equivalent of 100% of the packaging placed on the market, achieve 100% recyclability of its packaging, and build partnerships to implement circular economy models with local partners.
Specifically in the Dominican Republic, the Coca-Cola System contributes to programs under the Regional Initiative for Inclusive Recycling and this year announced its support for the Collaboration Agreement between AIRD and EcoRED to work toward a new production model that contributes to improving business competitiveness and the comprehensive management of solid waste. Another priority is investing in innovative packaging, promoting recyclability and the use of recycled PET resin, as is the case with the DASANI water bottle, which currently uses 30% recycled PET resin in its packaging.
“We are very pleased with the results of the study because it gives us a complete picture of our footprint in the Dominican Republic, where we have been operating since 1945. This exercise in transparency, thanks to the information processed by PwC, allows us to identify where we are and what our opportunities are to grow our business and our positive impact on the Dominican Republic in the economic, fiscal, and social dimensions,” said Carlos Ricalde, CEO of The Coca-Cola Company for the Caribbean, during the presentation.
Otoniel Aybar, vice president of the bottling company Bepensa Dominicana, explained that the system has a local production plant, 16 distribution centers, and 283 delivery routes, enabling the Dominican market to enjoy a variety of beverage brands and packaging, such as Coca-Cola Original and Sugar-Free, Dasani, Sprite, Fanta, and Country Club. He also shared the system's future path and ambitious plans to continue generating shared value in the country.
The study was presented at the AIRD facilities to the media, business leaders, and government representatives.
To access the study and the infographic with the main results, please contact Carolina Veras at carolina.veras@newlink-group.com.
About the Coca-Cola System
The Coca-Cola Company (NYSE: KO) is a total beverage company, offering more than 500 brands to consumers in more than 200 countries. In addition to Coca-Cola brand beverages, our portfolio includes some of the world's most valuable beverage brands, such as AdeS soy beverage, Ayataka green tea, Dasani waters, Del Valle juices and nectars, Fanta, Georgia coffee, Gold Peak teas and coffees, Honest Tea, Innocent smoothies and juices, Minute Maid juices, Powerade sports drinks, Simply juices, smartwater, Sprite, vitaminwater, and Zico coconut water. We are constantly transforming our portfolio through actions ranging from reducing the amount of sugar in our beverages to bringing innovative new products to market. We also work to reduce our environmental impact by replenishing water and promoting recycling. Together with our bottling partners, we employ more than 700,000 people, providing economic opportunities to local communities around the world. To learn more, visit Coca-Cola Journey at www.coca-colacompany.com, and follow us on Twitter, Instagram, Facebook, and LinkedIn.
