Portuguese non-alcoholic drinks producer Sumol + Compal has warned of significant increases in prices for soft drinks in 2017 due to an added sugar tax.
The country’s parliament approved the application of a Special Consumption Tax on 25 November to beverages with added sugar and other sweeteners (IABA) from February. As a result, the final price of sugary drinks will increase by €0.15 to €0.30 for each 1.5 litre bottle.
In a statement, Sumol + Compal said it anticipates a negative impact on the performance of its brands in the soft drinks category, which represent about 40% of its turnover in the Portuguese market.
The company added that, due to the uncertainty generated by the 'huge tax increase' applied to soft drinks, a market where it achieves about 70% of its business, it is not possible to 'maintain or replace the medium-term perspectives from the 2015 economic-financial report'.
Sumol + Compal also said it anticipates a slightly increased turnover and a moderately higher operating result in 2016, compared to the previous year.
Contributing to the more positive performance were favourable weather conditions, a recovery of private consumption, the increase in market share and the recovery of sales in Angola.
Sumol + Compal owns and represents some of the most popular and biggest-selling brands in Portugal, with extensive market share in carbonated soft drinks, juices, nectars, non-carbonated fruit drinks and sparkling and still water, including aromatized varieties.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
