Wall Street Journal - September 27, 2002
Ann Carrns, Staff Reporter of The Wall Street Journal

The bottlers, which are mostly independently owned, employ a total of 58,000 people. So far, the eight major bottlers representing 19 African countries, comprising about 35% of the bottling work force on the continent, have agreed to participate. Coke is working to sign up the rest of the companies, some of which have fewer than 100 employees, with the goal of having all participating within a year, a spokeswoman said.

The company said the program, which it is funding through the Coca-Cola Africa Foundation in Swaziland, also will offer benefits to the spouses of employees of the participating bottlers.

Coke had been criticized by AIDS activists for failing to do enough to address AIDS in Africa, which has the highest rates of the disease in the world. Coke has offered AIDS benefits, including access to antiretroviral drugs, to its 1,200 employees in Africa since June 2001. But benefits for workers at the bottling companies had been limited to prevention and testing programs.

Under the new program, Coke will pay half the cost of the plan, the bottling companies will pay 40% and employees will be responsible for 10%, a company spokeswoman said. She added, however, that details could vary by company. Coke's contribution for the new initiative is estimated at $4 million to $5 million annually, she said.

The plan for the bottlers is an outgrowth of a partnership Coke's Africa Foundation formed in June 2001 with UNAIDS, the United Nations agency coordinating the global HIV/AIDS battle. Their efforts so far have included development of prevention, education and treatment programs in local communities, and using Coke's marketing expertise to develop public-awareness campaigns.

"No single organization can stand up to AIDS alone, but Coca-Cola Africa and its bottlers are determined to do their part," said Alexander Cummings, president of Coke's African business and chairman of the foundation, in a statement.

Some critics, though, remained skeptical of Coke's efforts. "We see this as a positive sign. However, we don't think it goes far enough," said Sharonann Lynch, a member of Act Up New York, a grass-roots AIDS organization. She noted that the plan doesn't yet include all the company's bottlers and that the program doesn't offer benefits to employees' children. Plus, the portion paid by employees may be difficult for workers in some countries, such as Zambia, where wages are low.

Write to Ann Carrns at ann.carrns@wsj.com

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