Tax and Canning Sugary Drinks

sugar tax

According to an article by the Financial Times, Coca-Cola will not be taking legal action following the UK Government’s proposed ‪#‎SugarTax‬ in 2018. Instead, going forward they are keen to work in collaboration with the government with the aim to help combat childhood obesity in the UK.

Sol Daurella, who is the chairman of Coca-Cola European Partners, mentioned to the Financial Times an introduction of alternative drinks, that are lower in sugar, such as juices, teas and waters. Innovation may be the most crucial buzzword for Coca-Cola over the next 2 years, encouraging them to diversify its drinks portfolio, before the Sugar Tax kicks in.

Analysts have declared that Coca Cola will be the most severely hit soft drinks producer by the UK’s proposed Sugar Tax. Compared to its competitor Britvic, who produce Robinsons Fruit Juice as well as Pepsi, 20% more of Coca-Cola’s portfolio will attract the proposed Sugar Tax.

Later this month the company will undergo a £10m campaign to rename their Coca-Cola Zero drink to “Coca-Cola Zero Sugar”, as many consumers were supposedly unaware that the zero referred to the drink having no sugar. You’d think that rose by any other name would smell as sweet but it’ll be interesting to see if sales of this drink do increase after the rebrand.

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