Recently With the UK government planning to introduce a “sugar tax” aimed at high sugar carbonated drinks, The Coca-Cola Company is looking at modifying its drinks to ensure that some of them do not fall under the levy. The tax is expected to be imposed in two bands, one for total sugar content above 5 gm per 100 milliliters and a higher band for sugary drinks with more than 8 gm of sugar per 100 milliliters. While most of Coca Cola’s drinks will fall under the higher brand, the company introduced Coke Zero Sugar in UK – a re-branded version of Coke Zero, which will not contain sugar. This product will be launched in other western European countries from September this year and later in the U.S. The shift towards healthier drinks is critical for Coca Cola to grow revenues in the long term and the company’s strategy to position Coke as tea which can be had “with” or “without sugar” can appeal to diverse consumer preferences.
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