Coca-Cola India warns of factory closures if "sin tax" applied
Coca-Cola said it had opened three Greenfield sites in India recently
The Coca-Cola Co has said it would have "no option" but to close factories in India if a proposed "sin tax" on CSDs is introduced.
Indian authorities are attempting to simplify the country's tax code with a national goods and services tax. However, plans include a 40% tax rate for aerated beverages in an attempt to tackle health issues arising from obesity.
Saying the 40% tax would make the industry "unviable", Coca-Cola's India unit warned that the move would send shockwaves through the entire beverage sector and lead to a fall in consumer demand. It also said there would be a "significant rationalisation of manufacturing capacity".
"In these circumstances, we will have no option but to consider shutting down certain factories," Coca-Cola said.
India is a key market for Coca-Cola, which has seen falling volumes for CSDs in core Western markets. The company has already invested more than US$2.5bn in the country and plans to spend a further $5bn by the end of 2020. In the past 20 months, it has opened three green-field sites in India, it said.
Last year, Coca-Cola launched Coke Zero in India.
In achieving its goal to replenish water equivalent to its 2015 sales volumes "back to nature and communities", Coca-Cola gave itself a compelling sustainability story to tell consumers. Greg Koch, se...
Coca-Cola Co saw its share of the global HW soft drinks slip between 2009 and 2014, primarily due to its dependence on BFY reduced sugar carbonates....
Energy drinks continued its healthy development in 2015, largely due to the dynamism of manufacturers of this product...
Manufacturers of coffee in Spain took a strong interest in the category of RTD coffee in recent years, as it proved to be a key method of diversifying their businesses and targeting new consumers and ...
The growing perception among Spaniards that sugary soft drinks are among the key contributors to overweight issues and obesity in the developed world has resulted in an increase in consumer demand for...
- Five ways small brands can beat big players
- Interview, Bulldog Gin founder Anshuman Vohra
- Pernod Ricard Q1 2017 results by region, brand
- Interview, Bulldog Gin CEO Anshuman Vohra, Pt II
- The end is nigh for Global Travel Retail - Comment
- AB InBev fund ZX Ventures buys homebrew co
- Stumbling UK Pound prompts Conviviality price hike
- Edrington’s The Macallan 40 Year Old - NPD
- CCBA partner "in place by 2018" - Coca-Cola
- Beam Suntory to invest US$1bn in Bourbon
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020
- Global RTD insights - market forecasts, product innovation and consumer trends