Coca-Cola Beverages Africa warns SA sugar tax may hurt merger terms
South Africa's proposed sugar tax would add 20% to the cost of a 33cl can of regular Coca-Cola
Coca-Cola Beverages Africa has expressed concerns over meeting merger conditions, should South Africa implement its current sugar tax plan.
The JV between SABMiller, Coca-Cola Sabco and The Coca-Cola Co began its life as Africa's largest Coca-Cola bottler last month. Anti-trust regulators in South Africa approved the merger in May with several conditions, including a three-year jobs guarantee and ZAR800m (US$54m) to support business development in the country.
In July, South Africa's Treasury proposed a 20% tax on sugary soft drinks to help fight obesity-related diseases. The proposed tax rate is ZAR0.0229 (US$0.0016) per gram of sugar, which would add 20% to the cost of a 33cl can of regular Coca-Cola.
CCBA said in a statement that if the tax were implemented as proposed, "we would have concerns about our ability to meet the merger conditions attached to the recent creation of CCBSA".
The company continued: "We remain committed to South Africa and will continue our ongoing dialogue with the government about being a good partner for economic growth."
Africa Beverage Forecasts March 2016 ; Comprehensive Topline Analysis of All Commercial Beverages Trends and Forecasts
Canadean’s Africa Beverage Forecasts covering soft drinks, dairy drinks, hot drinks and alcoholic drinks provides a comprehensive analysis of consumption trends in Africa....read more
- Interview - Pernod Ricard's luxury director
- What's coming up in wine in 2017? - Comment
- The just-drinks Analyst - 2017 forecasts
- The wine category in 2016 - Review of the Year IV
- The Cognac Category - Everything you need to know
- Edrington readies Americas, GTR exec switches
- Diageo Australia names new commercial head
- Diageo lines up 2017 Johnnie Walker expressions
- High-end Cognac making recovery in China - Pernod
- Drinks industry counters calls to ban alcohol ads
- The Next Seven Big Beverage Markets
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Darker Than Before: Global Prospects for Brown Spirits
- Global gin insights - market forecasts, product innovation and consumer trends