Coca-Cola reverses decision to dump orange suppliers
ProcurementLeaders.com - Mar 8th 2012, 09:54
Soft drinks giant Coca-Cola will continue to source oranges from local Italian suppliers after initially saying it would drop them following reports of poor working conditions among fruit pickers.
Coca-Cola sources oranges from southern Italy for the local version of its Fanta range of drinks. But in the wake of a report by The Ecologist which highlighted the desperate working conditions of immigrant labourers in the Southern town of Rosarno in Calabria, Coca-Cola announced it would no longer use the relevant producers.
However, a meeting between the drinks giant and the Italian agriculture minister Mario Catania resulted in a change of mind by Coca-Cola. As part of its mind change, the Atlanta-based company said it would enter into multi-year contracts with the producers from Calabria and Sicily. The longer contracts, in contrast to seasonal ones, should allow the suppliers to improve productivity as well as working conditions.
Salvatore Gabola, director of European public affairs at Coca-Cola, told reporters that, “It wasn’t our initial intention, but considering the emotional situation we’re in ... we have decided to keep our local supplier."
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