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Our Operating

Economic and Political Conditions

CCI operates in a geography where political instability, macroeconomic challenges and security issues abound. In addition to all these challenges, the impact of the Covid-19 pandemic, which rapidly spread across the world, were also seen in our geographical range of operations in 2020. There was a term of operations during which national economies shrank, an atmosphere of uncertainty intensified, and consumer trust and purchasing power decreased due to this unprecedented pandemic. Despite the war and political tension experienced in Azerbaijan and Kyrgyzstan, the sudden drop in oil prices that affected Central Asia and Iraq, the ongoing foreign exchange conversion problem in Turkmenistan, and the continuing adverse macroeconomic conditions in Pakistan during the year, CCI increased its sales volumes in its international operations, and closed 2020 with a shrinkage that was less than expected in its Turkey operations.

This superior performance was achieved through proactive and active measures that were taken on the one hand, and our consumers’ loyalty and trust in our brands on the other. CCI also supported this operational success financially in 2020, and, preserving its high-quality growth algorithm, continued to create a strong balance sheet and free cash flow.

Related Regulations

At CCI, we operate in an ever-changing environment. Certain regulatory changes were made during the reporting period.

GEKAP: The Recovery Contribution (GEKAP) was published in the Official Gazette in 2019 and brought into force in 2020. GEKAP requires that legal entities submit a recovery contribution declaration for the primary and secondary packaging of the products they import, or put on the market.

The one-way beverage package return plan practice is planned to enter into force by 2022 to ensure transition to a more cyclical economy. The types of material to be included in this scope shall be identified. We continue to work with all concerned stakeholders to bring the return system to life. Together with our desire to raise consumer awareness of package waste pollution and decrease our environmental impact, we strive to increase our recycling ratios in the transition to a cyclical economy.

TURKISH ENVIRONMENT AGENCY: The Law on the Establishment of the Turkish Environment Agency and on Amendments to Certain Laws was adopted by the Grand National Assembly of Turkey and was published in the Official Gazette on 30.12.2020. With the establishment of the Environment Agency, certain responsibilities currently assumed by the Ministry, such as the Deposit Return System (DRS) relating to the Protection of the Environment, shall be delegated to the Agency.

Technological Requirements

CCI has been investing in data and technology to be relevant in the “Digital Era” and achieve the company vision. We use data and technology to:
Improve experience and solve Customers’ problems, always with an outside in lens – from Customers’ lens (Customer Experience)

Increase asset utilization, achieve higher levels of efficiency, quality, environmental sustainability (Asset Optimization)

Give back time to our employees to reskill/upskill and to make life easy (People Experience)

Re-invent and create new business opportunities (Innovation)
We are continuing to implement core foundational blocks such as ERP, CRM, Contract Configuration Management, Warehouse Management, Transportation Management and increasing momentum in automation to gain higher levels of optimization and productivity. We are building a digital twin of our organization, plants and customer experience with a combination of core API and microservices-based technologies, cloud, AI/ ML (such as conversational AI, computer vision, deep neural networks), IIoT, edge computing and robotics process automation. In turn, this enables agile business, continously adapting to changing market conidtions.
Our ambition is to continuously be relevant for all our stakeholders and continue to deliver value. To this end, Innovation and building the culture is critical stimulus. We established our presence at BUDOTEK. Teknopark is our Incubation Center and the Foundry. We will leverage this center to experiment, design, develop and productize advanced technologies, data and AI based industry solutions to solve Customer problems and business challenges. The Foundry will allow us to collaborate with start-up communities, universities, ecosystem partners to showcase, co-innovate and co-develop solutions.
Future Outlook