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Aboitiz Group bullish on CCBPI business despite higher sugar tax

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AEV senior vice president and chief finance officer Jose Emmanuel Hilado said during the company’s third-quarter investors briefing the higher taxes would affect sales only on the short term as consumers would eventually adjust to higher-- READ MORE:

AEV senior vice president and chief finance officer Jose Emmanuel Hilado said during the company’s third-quarter investors briefing the higher taxes would affect sales only on the short term as consumers would eventually adjust to higher prices. Eventual sales are expected to go back, he said.“The experience of CCEP shows that you will get hit initially. There could be a drop in sales of 10 to 15 percent, but amazingly, this kind of market adjusts eventually.

The Department of Finance disclosed plans to increase the sweetened beverage tax rate to P12 per liter, regardless of the type of sweetener used. The higher taxes on junk food and sweetened beverages are expected to generate an additional P76 billion in the first year, the DOF said, and result in a 21-percent reduction in the consumption of junk food.

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