Pepsi not allowed to sell HFCS stocks to Lucio Tan group
Sugar Regulatory Administration (SRA) did not allow Pepsi-Cola Products Philippines, Inc. (PCPPI) to sell its unused high-fructose corn syrup (HFCS) to Asian Alcohol Company (AAC) of the Lucio Tan Group.
SRA Board Member Roland Beltran said in a report that the Sugar Board already decided to deny PCPPI’s request for the agency to allow it to sell the said stocks to AAC.
“The Sugar Board is unconvinced of Pepsi’s letter of reconsideration. The Sugar Board noticed the ambivalence of Pepsi from the start,” Beltran said.
“It was not sure of the remedy sought for. At first, we reclassified as C the HFCS, then upon Pepsi’s requests, we had it reclassified as D upon representation that it will sell the HFCS to Vietnam. Then another request to further reclassify from D to B without providing any plans of disposal,” he added.
Because of higher tax imposed to drinks with HFCS, soft drink manufacturers like PCPPI decided to dispose their HFCS and return to their old mix, which is 100 percent sugar.
But unlike other companies, PCPPI struggled to implement such disposal.
“At this point, the Sugar Board is already confused of the approached taken by Pepsi. Pepsi has to make a coherent and plausible presentation, not in a confusing manner as it had earlier dealt with the regulatory agency,” Beltran further said.