VZCZCXYZ0001
RR RUEHWEB

DE RUEHRA #0662 2301447
ZNR UUUUU ZZH
R 181447Z AUG 06
FM AMEMBASSY RIGA
TO RUEHC/SECSTATE WASHDC 3260
INFO RUEHBS/AMEMBASSY BRUSSELS 0079
RUEHSM/AMEMBASSY STOCKHOLM 1056
RUCPDC/USDOC WASHDC

UNCLAS RIGA 000662 
 
SIPDIS 
 
STATE FOR EB/CBA/B. WALTERS 
 
STOCKHOLM AND BRUSSELS FOR FCS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD EINV BEXP PREL LG
SUBJECT: COCA-COLA STILL FIGHTING LATVIAN MINISTRY OF HEALTH OVER 
PROPOSED REGULATIONS 
 
REF: A) RIGA 00528, B) RIGA 00566, C) 00552 
 
¶1. (SBU) SUMMARY. DURING THE PAST SEVERAL WEEKS, COCA-COLA HAS MET 
WITH GOL OFFICIALS AT BOTH THE HEALTH AND EDUCATION MINISTRIES TO 
PRESS THE GOVERNMENT TO WITHDRAW PROPOSED REGULATIONS ON SOFT DRINK 
SALES IN SCHOOLS.  ON AUGUST 2, POST ARRANGED FOR THE MINISTER OF 
ECONOMICS TO VISIT COCA-COLA'S LOCAL DISTRIBUTION FACILITIES ALONG 
WITH THE AMBASSADOR.  THE MINISTER WAS VERY RESPONSIVE AND EXPRESSED 
SUPPORT FOR COCA-COLA'S POSITION ON THE ISSUE.  THE FOREIGN 
MINISTRY, THE ECONOMICS MINISTRY, AND THE PRIME MINISTER'S OFFICE 
HAVE BEEN VERY RESPONSIVE TO POST AND COCA-COLA'S EFFORTS.  HOWEVER, 
THE MINISTRY OH HEALTH (MOH) HAS DUG IN ITS HEALS AND MAINTAINS ITS 
SUPPORT FOR THE PROPOSED BAN.  IT IS LIKELY THAT THE MINISTER OF 
HEALTH IS USING THE PROPOSED REGULATIONS TO RAISE HIS PROFILE AND 
GARNER PERSONAL PUBLICITY DURING AN ELECTION YEAR.  GOING FORWARD, 
COCA-COLA PLANS TO FOCUS ITS ENERGIES ON IMPLEMENTING A PILOT 
PROJECT IN RIGA SCHOOLS.  THE AIM OF THE PROGRAM IS TO DEMONSTRATE 
THE VIABILITY OF A SELF-REGULATED APPROACH TO REDUCE SOFT DRINK 
SALES IN SCHOOLS.  END COMMENT. 
 
¶2. (SBU) AS PART OF ONGOING EFFORTS TO GET THE GOL TO TAKE A 
COLLABORATIVE APPROACH TOWARDS REGULATING SOFT DRINK SALES IN 
SCHOOLS (REFTEL A), AMBASSADOR BAILEY AND MINISTER OF ECONOMICS 
AIGARS STOKENBERGS VISITED THE COCA-COLA DISTRIBUTION CENTER OUTSIDE 
RIGA AUGUST 2.  THE VISIT STARTED WITH A TOUR OF THE PLANT AND WAS 
FOLLOWED BY A PRESENTATION FROM COCA-COLA.  DURING THE PRESENTATION 
COCA-COLA DISCUSSED THE PROPOSED BAN AND ADVANCED ITS ALTERNATIVE 
APPROACH TO THE ISSUE.  MINISTER STOKENBERGS EXPRESSED HIS SUPPORT 
FOR COLLABORATION BETWEEN GOVERNMENT AND BUSINESS IN GENERAL AND 
STATED THAT HE WOULD "NOT SUPPORT ANY POLITICIAN ADVANCING HIS 
PERSONAL AMBITIONS" AT THE EXPENSE OF THE OVERALL BUSINESS 
ENVIRONMENT IN LATVIA.  [NOTE: THIS WAS A NOT VERY SUBTLE ALLUSION 
TO HEALTH MINISTER GUNDARS BERZINS, WHO IS OF THE SAME PARTY AS 
STOKENBERGS, BUT A DIFFERENT FACTION.] 
 
¶3.  (SBU) UNABLE TO GET A MEETING WITH MINISTER BERZINS HIMSELF, 
COCA-COLA PARTICIPATED IN SEVERAL MEETINGS WITH THE MINISTRY OF 
HEALTH AT THE STATE SECRETARY OR LOWER LEVEL DURING THE LAST SEVERAL 
WEEKS.  THE GENERAL ATTITUDE AT THE POLITICAL LEVEL OF THE MOH IS 
THAT THE PROPOSED BAN IS GOOD FOR CITIZENS, AND THERE IS LITTLE 
INTEREST IN COCA-COLA'S PROPOSED SELF-REGULATION.  NEVERTHELESS, THE 
HEALTH MINISTRY PRAISED COCA-COLA'S IDEA FOR A PILOT PROJECT 
DEMONSTRATING THE MERITS OF SELF-REGULATION.  COCA-COLA IS MOVING 
FORWARD WITH THIS PROJECT IN 25 SCHOOLS IN RIGA, AND HOPES THIS 
PROGRAM CAN SERVE AS A BRIDGE BETWEEN THE COMPANY AND THE HEALTH 
MINISTRY. 
 
¶4. (SBU) ON AUGUST 3, COCA-COLA MET WITH THE MINISTRY OF EDUCATION 
(MOE) AND SEVERAL NGO'S.  ACCORDING TO COCA-COLA, THE MOE WAS MORE 
BALANCED THAN THE HEALTH MINISTRY HAD BEEN, AND APPEARS FOCUSSED ON 
OTHER ISSUES.  THE LATVIAN TRADERS ASSOCIATION ATTENDED THIS MEETING 
AND PROVIDED FULL SUPPORT FOR COCA-COLA'S VOLUNTARY APPROACH BASED 
ON INDUSTRY GUIDELINES. 
 
¶5. (SBU) ON AUGUST 16, RAIMOND MADE, COCA-COLA'S PUBLIC AFFAIRS 
MANAGER FOR THE BALTIC REGION, TOLD EMBOFF THAT COCA-COLA HAS 
EXPLORED ALL POSSIBLE ROUTES OF DISCUSSION WITH THE GOL.  NOW 
COCA-COLA PLANS TO MOVE FROM "WORDS TO WORK."  THE COMPANY HAS 
ALREADY BEGUN IMPLEMENTING ITS PROPOSED PILOT PROJECT IN 25 SCHOOLS 
AROUND RIGA.  THIS PROGRAM HAS RECEIVED SUPPORT FROM THE RIGA CITY 
GOVERNMENT, AND HAS BEEN EMBRACED BY THE SCHOOLS THAT WERE INVITED 
TO PARTICIPATE.  COCA-COLA HOPES TO SEE THE INITIAL RESULTS FROM 
THIS PROJECT BY MID-SEPTEMBER AND PLANS TO PRESENT THE RESULTS TO 
THE GOL. 
 
¶6. (SBU) COMMENT:  AFTER MUCH LOBBYING BY POST AND OTHER SOURCES, 
THE MOH FINALLY RELENTED AND AGREED TO MEET COCA-COLA FOR SEVERAL 
DISCUSSIONS (DESCRIBED ABOVE) AT SENIOR OFFICIALS' LEVEL.  HOWEVER, 
THE MOH HAS STOOD FIRM BEHIND THE PROPOSED BAN, AND THE MEETINGS HAD 
LITTLE EFFECT ON MINISTER BERZINS' POSITION.  COCA-COLA HAS 
EXPRESSED SATISFACTION THAT, AFTER A MAJOR FLARE UP IN LATE JULY, 
THERE HAS BEEN RELATIVELY LITTLE PRESS ATTENTION GIVEN TO THE TOPIC 
DURING THE LAST FEW WEEEKS.  IT APPEARS THE ISSUE WILL BOIL DOWN TO 
A TEST OF WILLS IN THE CABINET, WITH THE ECONOMIC AND FOREIGN 
MINISTRIES LIKELY SUPPORTING COCA-COLA AND THE MINISTRY OF HEALTH 
PUSHING FOR A BAN.  GIVEN ELECTION YEAR POLITICS, THE UPSHOT OF THIS 
FIGHT IS STILL UNKNOWN.  POST WILL CONTINUE TO STRENOUSLY PRESS 
COCA-COLA'S CASE AND ENSURE THAT THE GOL KNOWS THAT THIS ISSUE 
REMAINS HIGHLY IMPORTANT TO THE USG.  END COMMENT. 
 
ANTWEILER