Coca Cola sees double digit sales volume drop in Q2, increases ready-to-drink sales in Romania

Coca Coca Hellenic's sales volumes in Romania declined by low-double digit percentage points in the second quarter of the year, reflecting the continued challenging economic environment, earlier timing of Easter this year and the effect of severe flooding in the southern and eastern regions of the country. However, overall, the company saw volume share gains in nonalcoholic ready- to-drink in Romania, Ukraine, Poland and Hungary. The ready-to-drink products include ice tea and iced coffee. “In the [second] quarter, the Romanian government announced new austerity measures comprising steep cuts to public sector salaries, a 5% increase in VAT (effective from July) and a reduction in subsidies for certain household utilities. Such measures are expected to further reduce consumer confidence and discretionary spending in 2010,” Coca Cola Hellenic has said in a statement. “We remain vigilant with regard to deteriorating economic conditions in Greece, Romania and Bulgaria and are closely monitoring developments in these countries,” the company goes on. The company sold 471 million unit cases in the first six months of the year in emerging countries, which include Romania, Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, Moldova, Montenegro, Nigeria, Russia, Serbia and Ukraine. Its net sales in these countries reached EUR 3.3 billion during the first half of the year, slightly up on the same period of last year. Its total operating profit in these countries stood at EUR 314 million, EUR 14 million more than in H1 2008.