Coca-Cola will collaborate with the UK government in fighting obesity and not go to court over a proposed sugar tax on carbonated drinks, according to the Financial Times.
Analysts say that Coca-Cola will be hit hard by the UK’s proposed sugar tax since it is the country’s largest soft drinks producer. They estimate half of its portfolio would attract the tax, against 30% for Britvic, the Pepsi bottler, which also produces Robinsons and Fruit Shoot drinks.
The soft drinks giant has two years to sell fewer sugary drinks before the tax kicks in. This month, it will embark on a £10m advertising campaign to rename Coca-Cola Zero as Coca-Cola Zero Sugar, after discovering that many consumers didn't realise the zero equated to having no sugar.