March 6, 2012 6:51 pm

Coke sticks with Italian orange suppliers

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

Coca-Cola, the US soft drinks company, confirmed it would renegotiate a contract with a local juice supplier in the south of Italy for the production of Fanta, reversing a recent decision that raised concerns by local authorities and farmers over the economic fallout for the area.

The company will continue to source “100 per cent of its orange juice requirements for the Italian market from Italy”, from the regions of Calabria and Sicily, according to Salvatore Gabola, director-general for European public affairs for Coke.

Following talks with the Italian agricultural ministry, the company agreed to settle on contracts for several years rather than seasonal contracts, “to give a more serene and long-term approach” to the citrus sector. Talks with local companies will start in the next weeks.

The Italian juice is used only for the orange-based drinks sold on the Italian market.

Coke did not disclose details on the number of local suppliers used or the quantities and prices of juice sourced in Italy.

Last week the company announced that the seasonal contract with an entrepreneur in the town of Rosarno was ending and was not being renewed.

The decision was because of “business choices” and not “to news coverage”, which criticised the poor labour conditions of the seasonal workers and the low prices paid to the citrus producers.

“It was never our intention to pull out, we will not abandon this territory”, said Mr Gabola.

Copyright The Financial Times Limited 2015. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

NEWS BY EMAIL

Sign up for email briefings to stay up to date on topics you are interested in

SHARE THIS QUOTE