Jobs at risk as Coca-Cola reels from sugar tax
Union up in arms, but company says 1,000 jobs may have to go
The jobs of more than 1,000 people may be on the line as Coca-Cola Beverages SA embarks on restructuring. The company said this week it is reeling from the effects of the sugar tax imposed on sugary drinks from April last year. In a section 189 notice to the Food and Allied Workers Union, Coca-Cola Beverages SA said prior to the implementation of the sugar tax, volume growth expectations were at 4% a year. The tax as well as "economic headwinds" had resulted in lower volumes, which the company said were only expected to recover in 2021. The "health promotion levy" was introduced to curb the consumption of sugary beverages and generate much-needed tax revenue. The levy, fixed at 2.1c/g of sugar content exceeding 4g/100ml, affects sugary beverages manufactured in or imported into SA. The tax raised R2.3bn by the end of December 2018, Treasury said. Coca-Cola said it increased prices in response to the tax, but competitors maintained pre-levy prices, which cost Coca-Cola Beverages SA m...
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