Coca-Cola to cut bottle size, increase price in UK to deal with sugar tax

16-Jan-2018 - USA

Coca-Cola has announced its plans to cut bottle size and to increase price, in order to deal with the introduction of a sugar tax on soft drinks from April this year in the UK.

The beverage giant plans to cut the size of 1.75 liter bottles to 1.5 liter and at the same time raise prices by 20 pence to 1.99 pound. The company will also increase the price of 500ml bottle to 1.25 pounds from 1.09 pounds.

However, the company confirmed that it has no plans to change its classic recipe.

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From April onwards, beverage manufacturers will be taxed at 18 pence on drinks containing 5 gram of sugar or more per 100ml. Drinks with 8 grams per 100ml will be charged a higher tax rate of 24 pence.

The tax was first announced by then chancellor George Osborne at his final Budget in March 2016 and is meant to help tackle child obesity in the UK. The tax is expected to affect one in five soft drinks sold in the UK and it's estimated to raise around 520million pounds in additional tax.

Coca-Cola Classic contains 10.6g of sugar per 100ml. The company would have to pay a tax of 24 pence per liter.

"We have no plans to change the recipe of Coca-Cola Classic so it will be impacted by the government's soft drinks tax," said a spokesman for Coca-Cola European Partners. "Coca-Cola Zero Sugar and Diet Coke, our no-sugar colas, are not impacted."

In order to avoid the sugar tax, several manufacturers have responded by making changes to their recipes, mainly by lowering the use of sugar and increasing the use of artificial sweeteners.

AG Barr, the makers of Irn Bru, have decided to decision alter the recipe of drink which will now contain less sugar and more artificial sweeteners. (dpa)

https://www.yumda.com/en/news/1152919/coca-cola-to-cut-bottle-size-increase-price-in-uk-to-deal-with-sugar-tax.html