Coca-Cola’s inclusive distribution model in Ethiopia

Arriving in Ethiopia in 1998 the local Coca-Cola operation was hardly an operation to search for best practices. Today, the picture looks very different. Harvard University (download PDF) recently conducted research on the Coca-Cola Ethiopian manual distribution center (MDC) and published a report on the model.

The Ethiopian MDC project, launched in 1999, is today viewed as a highly effective distribution model (from a business perspective) and inclusive business model for the community (from a corporate social responsibility perspective). Due to the success of the model, it has been implemented in a number of countries in Africa, generating 12,000 jobs and more than $500 million in annual revenue. Here are some key Ethiopian CSR statistics from the report:

  • In Ethiopia 75% of owners are new business owners
  • 80% of the owners rely on the MDC for their sole income
  • 80% of the staff and 95% of the owners indicate they make more money now
  • On average, 3.9 people are employed by each MDC
  • 19% of owners and 8% of staff are female
  • 80% of owners and 90% of pushcart operators report receiving training

Kudos to the Ethiopian team for making it such a success!


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