Organization Name:
Coca-Cola Brasil
Organization Website:
Initiative/ Project Description:

In 2009, Coca-Cola Brasil became increasingly aware of a growing business opportunity associated with consumers moving from the low-income D and E socio-economic classes into the lower-middle class C segment. The company identified an opportunity to boost relevance and sales by increasing access to economic opportunities and enhancing the life skills of low-income youth in favela communities.

Coca-Cola’s Coletivo Retail trains unemployed youth from low-income communities for two months in technical and career skills such as retail and merchandising, computer skills, and interview preparation, as well as life skills including leadership, self-presence, and self-esteem. To ensure local relevance, the program partners with leading NGOs that have a physical presence in target communities. Students are paired with a local retailer to practice their skills and identify opportunities to improve the business.

Coca-Cola uses rigorous measurement to track and increase the business and social impact of Coletivo Retail. In the program’s first year, Coca-Cola focused its training sessions on the tech­nical aspects of retailing, such as merchandising or stock management. Based on measurement data, however, managers realized that the students faced self-esteem challenges that often prevented them from finding and maintaining employment. Accordingly, Coca-Cola revised the content of the training program to emphasize life skills. Measurement data revealed that another key success factor was the strength of the local implementing partner. The company continues to strengthen its approach by considering ways to enhance NGO partners’ management capabilities.

Coletivo Retail has been highly successful, training approximately 60,000 youth in more than 100 communities across Brazil as of January 2014. Over 70% of program participants are women. Before entering the program, most youth living in low income communities had few job opportunities. However within six months of completing the program approximately 30% of graduates typically find employment.[i] For those that find employment, family income increases by an average of 50%. From a business perspective, Coca-Cola sales increase at a more rapid rate in Coletivo Retail communities. The growth comes from the improved retail environment in the community and better consumer and retailer relationships. The program has now expanded into the Coletivo Platform, consisting of seven different models that include Coletivo Retail, which address different community and business needs across the value chain. 

Social Results:
  • Coletivo Retail has trained approximately 60,000 youth in more than 100 communities across Brazil as of January 2014, and over 70% of program participants are women
  • Before entering the program, most youth living in low income communities had few job opportunities; within six months of completing the program approximately 30% of graduates typically find employment
  • For those that find employment, family income increases by an average of 50%
Business Results:
  • Coca-Cola sales increase at a more rapid rate in Coletivo Retail communities due to the improved retail environment in the community and better consumer and retailer relationships

 


[i] 30% is a conservative estimate as Coca-Cola Brasil is not able to track the future employment of all graduates.

[ii] “Measuring Shared Value,” FSG. 

[iii] Internal Coca-Cola Brasil documents.