Coke, Pepsi, RC to reformulate soft drinks due to TRAIN’s sugar taxes

Image by Coca Cola, Pepsi, RC Cola
  • Three major beverage companies in the Philippines will be reformulating their soft drinks mix to avoid paying a heftier tax brought by the Tax Reform for Acceleration and Inclusion (TRAIN) law

You might notice a sudden “change” in your favorite soft drinks in the coming days as major beverage makers in the country will change their formulation.

Pepsi Cola Products Philippines Inc. earlier announced they will be using 100% sugar in their products instead of the previous mix of 60% sugar and 40% high fructose corn syrup (HFCS).

Coca-Cola Femsa Philippines Inc. will also be doing the same, as well as RC Cola Philippines, according to members of the Sugar Regulatory Administration (SRA) board.

This is because those using sugar have a lower tax rate of P6/liter while those HFCS are taxed P12/liter.

The TRAIN law also covers energy drinks and powdered juice drinks.

According to SRA administrator Hermenegildo Serafica, the sweetener consumption of “Coke,” “Pepsi” and “RC” amounted to 283,000 metric tons last year.

Meanwhile, SRA board member Roland Beltran said that Coca-Cola requested to reclassify their remaining HFCS for export, which means the company is shipping out its HFCS and will no longer use it for domestic production.

“RC Cola did the same. It already manifested that it will no longer use HFCS,” Beltran said.