Natalia Stroe: We are planning to introduce new products

How do you assess the current economic situation in the beverage market? Which categories are growing and which are declining?

The last year, or even the last few years, has been a big challenge for the entire food sector. The pandemic, the war in Ukraine, history-high inflation, rising raw material and production prices, or disrupted supply chains have forced the need to review and change business strategies. In turn, growing uncertainty and worrying about the future caused the public mood to become less conducive to consumption. All this resulted in a decline in sales volume in ten of the 15 key categories in the food market.

There is some optimism, however, about the economic situation in the beverage market. In 2022, we observe positive dynamics and an increase of almost 2% year-to-date. This result is mainly due to two categories – carbonated beverages and energy drinks. It is worth mentioning that the former in particular is picking up after the effects of the so-called sugar tax, which is after all a tax on beverages.

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Natalia Stroe: Planujemy wprowadzenie kolejnych produktów

Jesteśmy silnie zakorzenioną i uwielbianą przez konsumentów w Polsce marką – mówi Natalia Stroe, dyrektor generalna Polski i krajów bałtyckich w Coca-Cola Poland Services.

From today’s perspective, how has the sugar tax affected your business?

The so-called sugar tax, which is in force in Poland from 2021, is the highest in Europe and the second highest in the world of this type of charge for beverage producers. That is why we, collectively as the entire beverage industry, have repeatedly called for a change of approach, open dialogue with entrepreneurs and, above all, time for the industry to prepare for such a major tax change. Both the legislative process and the very premise of the sugar levy, which discriminates against one product category, have raised and continue to raise our concerns. I would like to remind you that low-calorie sugar-free beverages are also subject to the tax, even though they are, after all, the only alternative to beverages sweetened with sugar.

Introducing the tax at such a surprisingly fast pace meant that we had to prepare a new business plan for 2021 in a very short timeframe. We aimed to adapt to the new conditions and take appropriate steps, both in the area of market activities and cooperation with business partners, in such a way that consumers were least affected by the changes. Although the so-called sugar tax has caused the category to shrink by 16% overall, Coca-Cola has seen a record-high increase in share in the category in 2021. This proves how well established and loved by consumers we are as a brand in Poland.

Importantly, the beverage tax has affected our pricing plans and policies, but it has not changed our strategy for developing our low- and sugar-free beverage portfolio, adopted long before its introduction. We want to provide Polish consumers with beverages for any time of day or occasion and give them choice, which is why we have been expanding our portfolio for years, focusing primarily on zero or lower-calorie products. They already account for 37% of our range, up 12% as compared to the last year!

We have been voluntarily making commitments to reduce the sugar content of our beverages for many years, including through UNESDA. This is what consumers, who are at the centre of our activities, expect from us. Sprite ICE Zero, Coke Zero Lime, and new flavoured variants of Fanta or Coca-Cola Zero Sugar Caffeine Free are just some of the new additions to the zero and low-calorie beverage category, introduced in 2022. And it doesn't end there; we are planning to introduce more products this year, which we will continue to communicate.

How important is the Polish market for the brand?

This year is a special year for us. We are celebrating 50 years of the Coca-Cola brand’s presence in Poland and 30 years of conducting business here. This is a time for joy, pride, evaluations, and, above all, for making plans for the future. It is also an opportunity for further intensive development of our business.

Although we are a global brand, we are actually a Polish company. Most of the products, as much as 92%, are manufactured in Poland – at our factories in Radzymin, Staniątki, and Tylicz. This is where we pay taxes, employ people, support local communities and work with local suppliers. We also make a significant contribution to the development of the Polish economy – about PLN 3.6 billion a year. Each PLN generated by companies generates PLN 3.83 of income in the national economy. 

We employ nearly 1,800 people, but one position in the Coca-Cola system supports five more positions in other sectors of the economy. This means that our operations generate nearly 10,000 jobs. Investments are large part of our business. In the last decade alone, we have invested PLN 1.3 billion in Poland.

Poland is a country of many possibilities, with potential that exceeds that of many Western countries. However, for this potential to be harnessed and fulfilled, there needs to be a mutual willingness to enter into partnerships and cooperation. We want to continue investing in Poland, sustainably developing our business and contributing to the Polish economy. As an investor and employer, we need a stable regulatory environment for this, as well as an open dialogue with representatives of public administration, business, and NGOs.