Sunday October 26, 2014 Search
Weather | Athens
17o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Coca-Cola HBC shuts two production lines in Greece

By Dimitra Manifava

Coca-Cola Hellenic Bottling Company, the world’s second-largest Coke bottler, announced on Tuesday the closure of two production lines in Thessaloniki and Patras, in the context of the group’s restructuring program aimed at reducing operational costs.

Besides the fact that the decision entails the loss of 30 jobs, it sends a very negative message to the market and is a clear warning to the government about the unfavorable consequences on investment from the increase in taxation.

It is no coincidence that the decision comes just a few months after the increase of value-added tax for refreshments from 13 to 23 percent. That played a key part in the reduction of group sales in Greece by 12 percent year-on-year in 2011.

Coca-Cola HBC announced yesterday that the activity of the Thessaloniki and Patras production lines will be transferred to the three remaining plants at Schimatari and Volos in central Greece and Iraklio on Crete. The Thessaloniki and Patras units will only operate as distribution centers and offices. The company is already involved in negotiations with the employees’ union for some of the 30 workers to be absorbed by other CCHBC units.

The statement suggested that the operating restructuring of the group in Greece is due to the reduction in consumers’ purchasing power which has led to a considerable drop in consumption since 2009.

Sources from the board of Greece’s biggest company in terms of capitalization told Kathimerini that there is no other similar decision planned for Greece in 2012, provided that the situation in the market does not deteriorate further.

In the last three years CCHBC sales in Greece have declined by 23 percent. The non-alcoholic beverages market as a whole was dealt a hefty blow in 2011, with sales volumes shrinking by 8.9 percent for refreshments, 10.1 percent for juices and 5.7 percent for bottled water.

At the same time, the first forecast for industrial investment in 2012 creates significant worries as an investment survey conducted by the Foundation for Economic and Industrial Research (IOBE) in October-November 2011 found that investment activity is set to drop by 5.6 percent this year.

While in March 2011 enterprises had expected an increase in investment for last year by 17.7 percent from 2010, at the end of the year they estimated investment to have declined by 2.9 percent. In the apparel sector, in particular, the decline reached a massive 88.5 percent on an annual basis.

The IOBE report added that the procedures of the bond swap and the assessment of real estate properties managed by banks are continuing to have a negative effect on loans issued, while the new reduction of the Public Investment Program will mean a further drop in subsidies. Consequently the funding of enterprises for investment in 2012 is awash in uncertainty.

ekathimerini.com , Tuesday February 28, 2012 (22:29)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greece’s lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Samaras pledges action after flash floods in Athens
3. Banks need to step up
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. No court hearings for civil cases
6. Nicosia says reforms are bringing results
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.