Community investments, taxes and contributions, added value along the entire value chain – these are the main coordinates of Nestlé’s presence in Romania. On the occasion of the 25th anniversary of its activity on the local market, the largest food and beverage company in the world presents the first socio-economic impact study.
“For us, a quarter of a century is measured in the value we bring to the Romanian economy and communities. Turnover, jobs and salary level, contributions to the state budget, all clearly outline the direct impact we have on the Romanian economy. Our economic footprint produces effects throughout the value chain. Together with our partners we generate growth in the national economy, a growth that we measure in this impact study in the economy. At the age of 25 we want to thank all those who have been in our team – employees, business partners, suppliers, authorities, social partners and all those who have remained faithful to our products. Thank you for growing up together!”, says Leszek Wacirz, Country Manager of Nestlé Romania.
Watch the 8 chapters of the “Growing together – Nestlé 25th anniversary” story
Cumulative figures at the level of 25 years: 11 billion lei turnover, 500 million lei paid to the state budget as contributions paid to employees, 650 million lei taxes and contributions, 122 million lei profit tax , 2.9 billion lei gross value added generated.
Starting from just 5 employees, the company today has hundreds of people who help the company’s mission to contribute to a healthier future. The first responsibility always remains the same towards them, reason for which the average gross salary at the level of Nestlé Romania was in 2020 of over 11 thousand lei/month, approximately double compared to the average gross salary at the level of the sector. And this leads to a high level of contributions in the chain. The contributions to the state budget related to the employees represent 30 million lei in 2020, the value of the contributions generated by the employees in the last 25 years reaching over 500 million lei.
Nestlé has paid taxes and contributions of over 650 million lei in 25 years of activity in Romania, of which 41 million lei in 2020 alone. The total value of corporate income taxes generated by the company in the last 25 years has been approximately 122 million lei. The gross value added generated by Nestlé Romania is estimated at 254 million lei in 2020. In the last 25 years, the gross value added was over 2,900 million lei.
Nestlé Romania has purchased products and services worth 153 million lei from 322 local suppliers in 2020, and in the last 5 years has made purchases of 790 million lei from local suppliers.
Nestlé Romania has invested over 250 million lei in the last 10 years. The investments made refer both to the modernization of buildings and to the purchase of equipment and furniture. In 2020, Nestlé Romania made investments of 17.4 million lei. The investments made by Nestlé Romania in the period 2011-2018 represented approximately 0.5% of the total investments made at national level in the wholesale sector.
Direct, indirect and induced effects
According to the impact study, 1 lei of turnover obtained by Nestlé Romania generates a turnover of 5.4 lei on the entire value chain, due to indirect and induced effects. And 1 lei of value added directly by Nestlé Romania generates 6.6 lei in terms of gross value added in the Romanian economy. At the same time, 1 million lei, the turnover achieved by Nestlé Romania generates 10 jobs in the Romanian economy, including in the trade sector.
The gross value added generated by Nestlé on the entire value chain is 1,678 million lei, representing approximately 0.16% of Romania’s GDP in 2020. Nestlé Romania generates 5.06 billion lei of turnover in the entire economy.
Each job created by Nestlé Romania determines that another 18 new jobs will be created in the Romanian economy.
The profit generated by Nestlé at the level of the entire economy is 466 million lei. Regarding the total impact on the taxes collected from the state budget, Nestlé generates 120 million lei in the economy (out of a total of 251 billion lei, revenues from the state budget).
In addition to the economic impact, Nestlé has developed over time a series of social initiatives in areas such as: environmental protection – Nestlé for a Waste Free World, orientation towards a healthier life – Nestlé for Healthier Kids Initiative, youth and community development locale – Nestlé Needs Youth.
“Under the Nestlé for a Waste Free World umbrella, on our way to zero net emissions, we have introduced 100% recyclable or reusable packaging, developed greening projects (POPAS) and awareness campaigns on the importance of protecting the environment (Less Waste More Love). Through Nestlé for Healthier Kids we inspire parents and children to adopt a healthy lifestyle and involve 210,000 students, 2 million parents, 6,744 teachers in 346 schools in our projects. We have launched a series of instruments through which parents can measure their children’s portions (Nutriplate) and VeggiePlate which helps adults lead a healthier lifestyle, while also helping the planet. Within the Nestlé Needs Youth initiative, in Romania, so far, together with our partners we have managed to involve in our activities over 18,000 young people nationwide, we keep apprenticeships and internships, we do digital trainings and we encourage young people with culinary skills. Last but not least, we support the Food Bank, the communities in need during the pandemic and we want to contribute to Romania’s recovery from the pandemic by launching the contest platform “Growing together”, which will reward 10 ideas that will help restart the lives of small communities large, from nutrition to infrastructure and selective collection”, says Irina Siminenco, Corporate Affairs Manager, Nestlé Romania.
Nestlé aims to double its activity in Romania in the next 5-10 years, both through organic growth, through the mix of products offered on the market, and through potential mergers and acquisitions.
Nestlé could create more than 170 new jobs in the coming years, reaching an average of 661 employees compared to 483 at the end of 2020.
Nestlé’s turnover could increase to over 1,800 million lei in the next 5-10 years, compared to 933 million lei in 2020. Considering a doubling of the activity in the next 5 years, the cumulated turnover could reach 7,500 million lei, and the taxes paid to the state budget (except for the contributions borne by employees related to salaries) could reach over 110 million lei in the next 5 years.