COKE PROFITS FIZZING OVER DESPITE TAX

COCA-COLA’S profits from Irish sales have soared despite the sugar tax.

The tax was introduced in 2018 to discourage people from drinking sugar-laden drinks, which can cause obesity and diabetes.

However, despite the tax aimed at improving people’s health taking in millions of euros per year, Coca-Cola has increased profits.

In 2017, the soft-drinks giant made €11.7million here but in 2018 – the year the tax was introduced – it made €13.9million, a rise of almost 20% – or more than €2million.

The Government brought the tax in as part of the fight against obesity but Coca-Cola Ireland boss Jon Woods said: ‘While we agree with the Government that obesity rates are too high and need to be reduced, we do not believe additional taxes are the solution. There is no reliable evidence from anywhere in the world to show that taxing food and drink – let alone just some soft drinks – has changed people’s behaviour and cut obesity numbers.’

The tax has meant many drinks firms have changed their recipes to cut the amount of sugar in the drinks. Coke has not changed its original drink’s formula but does sell alternatives such as Coke Zero and Diet Coke.

A 330ml can of regular Coke costs €1.15 in supermarkets but a can of Diet Coke or Coke Zero cost 10c less at €1.05.

Professor Donal O’Shea, head of the HSE’s anti-obesity campaign, said: ‘The majority of their products now are reformulated.

‘It’s hard to interpret those figures but we know the sugar tax is working in terms of behavioural change.

‘We know the sugar tax is working in terms of companies reformulating so I think a blanket interpretation is very hard.’

The Sugar-Sweetened Drinks Tax was introduced two years ago, on May 1, 2018.

This added 30c per litre on drinks with more than 8g of sugar per 100ml and a 20c per litre tax on drinks between 5g and 8g of sugar per 100ml.

The tax raised almost €16.5million in 2018, the first year it was levied.