Energy: Pierini (Coca-Cola Hbc Italia), ‘stellar costs (+ 500%), inevitable price increase’

“The picture is extremely complex, costs have exploded. Starting from those necessary for production, if we make a comparison between March 2022 and March 2021, as regards the cost of energy, there has been an average increase, as a company , + 500%. For gas we are talking about + 450% and then, compared to the raw material we use, plastic, there was a 60% increase in costs “. Giangiacomo Pierini, director of institutional affairs and communication at Coca-Cola Hbc Italia, does not use words to describe the alarming situation relating to energy increases and transport costs, which for months has also been a burden on the main producer and bottler of Coca-Cola brand products. in Italy. “It is a tragedy, the costs are stellar costs – says Pierini to Adnkronos – and the increase in prices will be inevitable. At a time when inflation is rising, we are screwing ourselves into a dangerous situation”. For Pierini, the alarm concerns “everyone”, not just Coca-Cola. “In smaller companies the situation is even worse” he says, stressing that one of the main problems is also that of finding the wood used for the pallets. “It comes mainly from Ukraine and Russia – he points out – and now it can no longer be found, prices have increased by 300% there are extremely negative effects”. Then there is the issue of transport, “the smaller transport companies with the increase in diesel have difficulty in moving forward” he says. The hope is that the supply of raw materials “will be guaranteed by other markets – says Pierini – and that the problems related to the procurement of other materials are solved with new suppliers and new geographies “. The greatest risk, if the situation does not improve, “is having to drastically increase prices – observes Pierini – and I fear it will be inevitable”. The fear, “is that this will lead to a decline in volumes and that it will become difficult to sustain the business”. In the case of Coca-Cola, Pierini points out, “there are also the sugar tax and the plastic tax that should come into effect in a few months and that the government did not have the courage to cancel”. To the executive, “we ask again to eliminate them because otherwise the situation will be out of control – he remarks -. The numbers say it, not the company. There is attention, we know from the newspapers that there have been actions but I think it will be necessary to do more, otherwise small businesses or very energy-intensive companies really risk closure “.