FDBusiness.com

French Soft Drinks Market Lacks Fizz

 Breaking News
  • 2 Sisters Food Group Sells Christmas Puddings Business to Valeo Foods 2 Sisters Food Group is selling its Matthew Walker Christmas puddings business to Valeo Foods Group, the fast-growing international ambient foods producer, for £67 million. The Matthew Walker business, based...
  • Carlsberg Gives Latest Green Fibre Bottle Update Carlsberg Group has given an update on its journey to create the world’s first ‘paper’ beer bottle made from sustainably-sourced wood fibres that is both 100% bio-based and fully recyclable....
  • Loma Launches New RUN-WET IQ4 Metal Detector Loma Systems, a leading manufacturer of high performance metal detectors, checkweighers and x-ray inspection systems for the global food and pharmaceutical industries, has introduced new RUN-WET® specification to its range...
  • Campari Group Expands Brands Portfolio Campari Group, the Italian and international drinks business, has acquired a controlling interest in Mexican super premium brands Ancho Reyes spicy liqueur and Montelobos mezcal. In 2018 the net sales...
  • Winners of the 2019 Global Bottled Water Awards The winners of the 2019 Global Bottled Water Awards were announced at an awards ceremony held at the iconic Burj Al Arab, during the 16th Global Bottled Water Congress in...

French Soft Drinks Market Lacks Fizz

French Soft Drinks Market Lacks Fizz
April 26
09:42 2013

The French soft drinks market is being adversely impact by the imposition of taxes and the continuing economic pressures on consumer spending, according to Canadean.

In January 2012, a new ‘fat’ tax was imposed on sugary beverages equating to around 1 cent per container, and expected to raise in the region of €150 million for the French Treasury. The new tax was introduced to both contribute to reducing the fiscal deficit, and to fight against the rising obesity problems that most western countries – including France – now face.

The tax hike has been heavily criticized by several soft drinks industry players claiming that consumption would fall by as much as 10% in what is considered by some to be an important sector of the economy. Despite this opposition, the government has refused to backtrack on the legislation, and while effects of the hike appear to have been somewhat overstated, the market for soft drinks in France remains subdued.

In the light of such a tax regime, and in line with the general economic malaise affecting France, many consumers have sought to reduce consumption of higher priced beverages, and a trend of trading down to less expensive, lower sugar products has been seen in the country over the last 12 months. Unless there is a change of heart on the part of the government, any significant growth recovery in drinks categories such as carbonates, juice, nectars and still drinks is unlikely to be seen in the short to medium term.

Conversely however, an attempt to introduce a punitive sumptuary tax (€50 per hectoliter) on energy drinks was struck down by the French ‘Conseil Constitutionel’ on the grounds that the tax lacked an ‘objective and rational criteria’. The tax had been intended to reduce the consumption of energy drinks as mixers for alcohol by young persons in particular. The ruling has been welcomed by several large players in the industry. As a result Candean forecasts further impressive growth in this category in the coming years, bucking the overall negative trend seen in the market as a whole.


Warning: count(): Parameter must be an array or an object that implements Countable in /home/fdbusiness/public_html/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5
Share

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

[eventlist]

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements