Soft Drinks Hit With 2017 Sugar Tax In Portugal

By Branislav Pekic
Share this article
Soft Drinks Hit With 2017 Sugar Tax In Portugal

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.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.