European Union integration. Challenges and Opportunities

Costin MandreaCoca-Cola HBC

18th of March

CCHBC – Integrated European business

CCHBC – Integrated European business• 26 countries in 3 continents

• 21 Supply Chain Clusters

• 80 plants with 222 filling lines

• 77 warehouses and 278 distribution centres

• 33,000 employees

• 20+ toll-fillers in use

• A large number of suppliers

• 500mln consumers

• 1.4 mln+ customers

Consumer • Huge market opening

• Purchasing power goes up

• Affordability will increase

• New categories/higher diversification

• New consumer behaviour – “European behavior”

• More demanding will lead to higher rate of innovations

• Potential constraints on promotions from EU legislation

EU integration – Impact areas

Customer• Higher consolidation of retailers

• Increasing the demand

• Price comparison between countries

• Possibility for cluster/European activations

• Higher efficiencies opportunity

• Transshipment

EU integration – Impact areas

Competition• Easier access to new markets for small players

• Economies of scale

• Increasing competitiveness will facilitate innovation and advance

• National monopolies will go away

• Level playing field

EU integration – Impact areas

Corporate• Corporate income tax

• Accounting treatments

• Supply chain opportunities

• Plant network optimization

• Labor code

• Labor cost

• Antitrust regulations

• Environmental

• Strategic pricing

EU integration – Impact areas

THANK YOU

Ευχαριστώ Multumesc