The new Government tax will lead to an increase in the price of Coca‑Cola Classic, but Diet Coke and Coca‑Cola Zero Sugar will not be affected. Furthermore, thanks to extensive reformulation over the past two years, the majority of Coca‑Cola HBC's portfolio will be exempt from the new tax.
The Government’s tax on sugar-sweetened soft drinks will come into effect from 6th April 2018 and as a direct result of this tax, the price per litre of Coca‑Cola Classic will increase from that date.
The no sugar options in the Coca‑Cola range; Coca‑Cola Zero Sugar and Diet Coke are not affected by the sugar-sweetened drinks tax.
In fact, thanks to extensive reformulation of its drinks over the past two years, the majority of our portfolio is exempt from the imminent government tax on sugar-sweetened drinks and we are now the market leader in sales of zero sugar drinks on the island of Ireland.
Ahead of the introduction of this new sugar tax, we have decided to introduce a new pack line-up to ensure that consumers continue to have clear and simple choices when it comes to choosing the drinks they want to buy.
New pack line-up
From February 2018, shoppers will start to see some changes to their pack line-up across the Coca‑Cola range in advance of the implementation of the sugar sweetened soft drinks tax.
The new line-up offers greater choice to consumers and customers, thanks to an increased range of reduced sugar drinks, and the introduction of new smaller, more convenient pack sizes for Coca‑Cola Classic.
The changes are also in keeping with our marketing strategy to ‘Hero Zero’, which encourages shoppers to ‘Choose No Sugar’ options.
The full Coca‑Cola range will continue to be available in 500ml bottles, Coca‑Cola’s most popular pack with consumers. The 330ml can will also remain available in the full range.
From April 2018, Coca‑Cola Classic consumers will also be able to choose a new smaller, more convenient pack size with the introduction of a sleek new 250ml slimline can and a 375ml (PET) bottle.
Take home packs
To increase value and availability of zero sugar options in ‘take home’ offerings, Diet Coke and Coca‑Cola Zero will increase to a 2 litre pack and Coca‑Cola Classic will be available in a 1.5 litre pack size. These packs will replace the existing 1.75litre packs.
The full Coca‑Cola range will continue to be available in 1.25 litre bottles.
In line with the changes to the single bottles, twin packs will change. Twin packs of Coca‑Cola Classic will be available in 2 x 1.5litre bottles, alongside twin packs of the zero sugar colas in 2 x 2 litre bottles.
The range of multipack cans will also undergo changes. Coca‑Cola Classic multipacks will be available in 4 pack, 6 pack, 10 pack and 20 pack cans. Zeros and Diets will be available in 4 pack, 8 pack, 12 pack and 24 pack cans.
The Government’s tax on sugar-sweetened soft drinks will come into effect in April 2018 and as a direct result of this tax, the price per litre of Coca‑Cola Classic will increase. In response to this, we are introducing new pack sizes, helping those who still want Coca‑Cola Classic to choose the right pack size for them, while providing affordable options. We believe that our approach will meet the needs of our consumers, keeping their choices clear and simple, and giving them what they want. Matthieu Seguin, General Manager, Coca‑Cola HBC Ireland and Northern Ireland
“We also know that our consumers want to manage their sugar intake and this has driven our approach to reformulation and new product development. We have consistently diversified our portfolio and reduced the sugar across our range. The majority of the drinks we sell are now lower in sugar - except for the much-loved Coca‑Cola Classic and some of our energy drinks and mixers, which remain unchanged.
“In line with our ongoing ‘Hero Zero’ marketing strategy, we will also offer greater value and choice across our ‘zero sugar’ options, which are exempt from the soft drinks levy,” Matthieu concludes.
Coca‑Cola Classic – a firm favourite
While extensive recipe changes have been underway across the Coca‑Cola portfolio to reduce sugar, the recipe for Coca‑Cola Classic will remain unchanged.
As one of the few drinks within the portfolio that will be subject to the soft drinks levy, Coca‑Cola Classic is an iconic drink that has been enjoyed by people for more than 130 years and will keep the great taste that people love.
As the number one brand across the globe, it has also retained the top spot of ‘Checkout Top 100 brands’ here in Ireland for more than a decade and delivers more than €100m in value to the grocery channel annually.*
*Nielsen IOI Total Value Sales inc Dunnes and Discounters December 2017 MAT
The new recommended sale prices (RSP) will reflect the spirit of the government’s sugar sweetened drinks tax, with the tax applied in line with the defined rates for drinks with greater than 5g sugar per 100ml, and drinks with more than 8g of sugar per 100ml. However, as always, the on-shelf price of our products is at the discretion of our retail and wholesale partners.