Coca-Cola stops distributing products on its own

Mugurel Radulescu, communications manager with the bottlers of Coca-Cola, Coca-Cola HBC Romania, says the company has gradually relinquished distribution of its products, spinning off the service to specialised companies in order to focus on its core business.
"Our company is centred on sales and marketing and we have the option of resorting to firms specialising in shipment for distribution," says Radulescu.
According to the representative of Coca-Cola HBC Romania, there are many distributors at present that have the managerial capacity of handling freight shipment for short and long distances.
When Coca-Cola initially entered the Romanian market, the direct distribution solution was mainly chosen because it allowed the safe delivery of products to customers, conforming to the company's strategy.
"Gradually, though, we've had to consider a solution, which is why we have sealed partnerships with strong distributors in most areas of the country," he adds. Radulescu also says the maturity level of distributors in the early ?90s cannot be compared with today's level.
"As the market has progressed, we've started considering the possibility of using some distributors. Originally, we resorted to them to send the freight to areas that were far from urban centres," says Mugurel Radulescu.
The company works with 91 distribution firms covering the largest part of the country. Direct distribution remains the solution used for Bucharest, Craiova, Pitesti, Brasov, Ploiesti, Iasi and Constanta.
"In the rest of the country, we have other distributors or contractors," adds Radulescu. The partnerships the company signed 12 years ago are still valid and distributors' businesses have grown in parallel with the business of Coca-Cola in Romania.
Radulescu also says the shippers' role is now more important given some plants' have become specialised in various product lines. This has entailed the shipment of a large volume of product from one location to another.
The company's organisation in Romania used to clearly reflect the regional strategy: one plant in each region and company-owned warehouses in most regional areas.
"At present, the number of warehouses has dropped to 12, as most of our distributors have their own warehouses and shipment facilities," Radulescu says.
In the production sector, Coca-Cola has recently finalised a 17 million euro investment in a new bottling line at the Timisoara-based plant. The new line has a maximum capacity of 36,000 bottles per hour and will be used for the bottling of Nestea teas and of some brands of the Cappy range.
Coca-Cola last year saw a 17% increase in sales on the Romanian market compared with the previous year, reaching a total of 123 million sold cases (the equivalent of 638 million litres).


Coca-Cola in Romania

Has gradually phased out the direct distribution of its products, resorting to specialised firms
Works with 91 distribution firms covering the largest part of the country
Direct distribution is still used in Bucharest, Craiova, Pitesti, Brasov, Ploiesti, Iasi and Constanta
Saw a 17% increase in the volume of sales from the previous year, to a total of 123 million sold cases.