FMCG Brands Should 'Keep An Eye' On Coca-Cola's Response To Sugar Tax
Coca-Cola's decision to cut its bottle size, while also increasing its prices, to counter the forthcoming UK sugar tax, should be watched by other brands that may be considering a range review and/or the introduction of new products, Engage Research has said.
The customer insight agency commented following the news that given the impending introduction of the sugar tax, a 1.75 litre bottle of Coke is to be reduced to 1.5 litres and increased in price by 20 pence in the UK, while the price of a 500ml bottle has also risen from £1.09 to £1.25.
The drinks firm is also introducing an ice tea drink called Fuzetea, a ready-to-drink cold coffee, Honest Coffee, and a dairy-alternative smoothies brand called AdeZ.
The sugar tax is to be set at 18p on drinks containing 5g of sugar or more per 100ml and a higher 24p rate on those with more than 8g per 100ml.
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