Interview with E. Neville Isdell, Chairman and Chief Executive Officer, The Coca-Cola Company, USA; Co-Chair, World Economic Forum on Africa

E. Neville IsdellWhat are African economies' competitive advantages and what would be your top recommendation to the continent's leaders to capitalize further on these?
The first part of this question is difficult because Africa is not a single market but a continent of distinct and highly varied economies. I believe, however, there are a number of positive, competitive indicators that hold true throughout much of the continent.

First, the continued global commodity boom should benefit Africa in the long-term, particularly if governments allow the benefits of this boom to flow through to broad segments of society. Second, Africans by and large are entrepreneurial. I see evidence of this spirit in my trips throughout Africa - most recently in Liberia, Burkina Faso, Kenya, Egypt, and South Africa. And, demographically, Africa is blessed with a young population, and as governments make needed investments to improve education and training, health, transportation and other infrastructure, the ability of this younger generation to reach their potential will be greatly improved and will enhance Africa's competitiveness.

With respect to what does business need from government? Good governance based on fiscal restraint and the promotion of free market principles. Both efforts will stimulate economic growth. Good governance also means efforts to combat corruption and to promote a clear, rules-based legal system. And, as I mentioned above, governments need to make investments to improve education and training, health, transportation and other infrastructure.

For our part, the Coca-Cola system is a significant contributor to economic growth and job creation throughout the African continent. As a local company in every country where our products are sold, we use local inputs and local distribution systems. And, for every job within the Coca-Cola system, we have some 60,000 system employees in Africa, a further 7-12 jobs are created in each country's economy as a result of these linkages.

As corporate global citizenship grows in importance, how should corporations exercise their civic duty with regard to major global issues like water?
We must collaborate in new ways with governments and civil society on issues where it is appropriate and relevant for our business to play a role. The challenges we face on a global scale are too urgent and complex for governments, businesses or NGO's to solve alone. We believe this interconnected triangle of business, government and civil society is the key to accelerating sustainable development across the region but also globally.

At The Coca-Cola Company, we are an integral part of helping local communities deal effectively with the water challenges they are facing today and will increasingly face in the future. This is especially true because water is fundamental to our business and to the sustainability of the communities where we operate. In 2007, The Coca-Cola Company announced its objective to become entirely water neutral on a global basis. We have begun several strategic initiatives, both internally and externally, with specific goals and objectives. Within our system, we have set solid mid and long term targets for water stewardship at our bottling facilities, including recycling, and waste water treatment and the reduction of our water use ratio -- the amount of water used to produce a unit of our beverages. With NGOs, governments and other private sector partners, we are working to protect watershed, increase communities' access to fresh water, educate communities about watershed management and increase global awareness of this critical challenge.

We have partnered with USAID on twelve water projects in Africa. One USAID project in Egypt is designed to encourage greater civic responsibility in maintaining water infrastructure and improving local water resources at the community level. To date, more than 15,000 households and 80,000 rural residents have benefited from cleaner water and sanitation through improved wastewater disposal facilities and solid waste management. This is one example among many that the Coca-Cola system is implementing across the region to do its part to address the critical water challenge.

We have made progress in each of this important area, but we recognize that there is much more to do.

What are the critical steps to take to address the rising food security crisis in Africa and what role should business play?
The food security crisis is not just an African issue; it is a global issue having reached every corner of the world and according to the World Bank, 100 million people have already been pushed into poverty by this crisis. It is no surprise, therefore, that the effects of the current food crisis have impacted millions in Africa.

In terms of addressing the food security crisis, we must set multiple time horizons. In the nearer term, efforts like the UN World Food Program need to be supported so that food and other immediate safety needs can be provided to those most in need. In the medium to long-term, adopt policies that promote increased agriculture production from existing arable land, that eliminate trade distorting agricultural subsidies especially in developed nations, and that reduce or eliminate tariffs or other barriers to agricultural trade.

As the economic slow down spreads beyond the US and the housing market, what impact is this having on Coca-Cola?
We have shown that when we commit ourselves to growing sparkling beverages, we succeed. Coca-Cola Zero is a great example of that commitment. We launched the brand two years ago, it is now in 81 markets and it continues to deliver double-digit growth. In the first quarter, we continued to deliver solid growth in sparkling beverages: we increased unit case volume three percent, led by five percent growth in international markets. We continue to execute our 3-cola strategy, and in the first quarter, our U.S. business achieved share gains in core sparkling beverages led by Coca-Cola Classic, Diet Coke and Coca-Cola Zero each gaining share. We have shown that if we innovate and invest in brand building activities, we can bring some excitement back to sparkling beverages