May 15, 2003
Beverage parallel imports in EU: The Inside Story

Following up the UK Coca-Cola parallel import story, and following great research by Colin, Heiko sends on an email he got from a friend with some inside information from another beverage company [names & countries withheld for obvious reasons, but it's not Coca-Cola and it's not UK]:

It's one of the problems that we encounter as well, the so called parallel imports and cross border. We can't do much about cross border because that is trade within the EU. Parallel imports however are coming from outside the EU. These bottles are produced at the [Company XXX] plants in other countries but sold at a lower price in [Country YY]. You would think this would not be a problem since it is still XXX owned. The problem lies in the fact that A&P and marketing are payed for locally. XXX YY spends lots and lots of money in advertising and promotions that we need to earn back through our locally produced bottles.
Hmmm... so does this mean that what we saw in the previous articles is Coca-Cola Tbilisi running a price war against Coca-Cola UK? Seeing that the products are sold to us, the end-customers, at approximately the same price, someone in the system is making a profit at the expense of lorryloads of needless exhaust output in the environment. Reduced shipping costs (ok, as well as reduced raw materials cost and labour cost) are key arguments for decentralized production: this is turning the equation upside down?

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Comments

i am the biggest trader of coca cola in the uk .
wouldyou like to know more about my trade ?

Posted by: on January 2, 2005 02:28 PM

...sorry, what is the problem in trading Cola from elsewhere? Globalisation an moreover global bsuiness isn't something that the peopel of Georgia or elswhere have invented....is the product of our "new economy concept"! The problem is not that there is Cola from Georgia, the main problem is related to the fact that the consumer at the moment doesn't profit from this price competition... what do you think?

Posted by: on June 18, 2005 12:53 PM
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hebig.com: Parallel Coca-Cola imports (contd.) (October 20, 2003 08:32 PM)
"Earlier this year, Anders Jacobsen published a story (and two follow-ups) uncovering parallel (grey?) imports of foreign soft drink bottles..."

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