Sugar Tax Threatens Jobs, South Africa Coca-Cola Bottler Says
- Plants could be closed if proposed charge is implemented
- Government aims to reduce sugar consumption, tackle obesity
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Coca-Cola Beverages Africa, the bottling joint venture between the U.S. soft-drink maker and brewer SABMiller Plc, may close South African plants and see profit in the country more than halve if the government pushes ahead with a proposed sugar tax.
South Africa’s National Treasury last month recommended a levy on sugar-sweetened beverages that would generate almost 11 billion rand ($813 million) in government revenue, based on 2012 consumption data cited in the policy paper. The charge is aimed at reducing consumption of sugar and encouraging producers and suppliers to cut the sugar content of their drinks, according to the government.