France to tax soft drinks with added sugar

Report Highlights: The French National Assembly passed a tax on all soft drinks with added sugar or artificially sweetened to raise ?280 million ($380 million) a year. Beverages without added sugar, such as natural fruit juices, are excluded from the tax, in addition to beverages with alcohol content. The tax will be paid by manufacturers and processors, as well as French importers. A significant share (?160 million or $216 million) of the money raised will be used to fund a lowering of social taxes on farm labor. U.S. companies, especially Coca-Cola and PepsiCo, will bear the bulk of this tax. French media reports that Coca-Cola alone would disburse more than ?100 million. It has also been reported that Coca-Cola had unsuccessfully lobbied against the extension of the tax to artificially sweetened drinks, due to concern about its strong market position with Coke Zero and Diet Coke. Most nutrition experts and beverage analysts do not expect the tax to change consumers' habits significantly; however, some experts highlighted the risk that facing a tight budget situation, the GOF may, in the future, extent such tax system to other food products.

Check the full GAIN Report FR9077 at USDA's website: http://gain.fas.usda.gov/Recent%20GAIN%20Publications/France%20to%20tax%20soft%20drinks.%20U.S.%20Companies%20to%20pay%20the%20most._Paris_France_10-26-2011.pdf