RC Cola to develop ‘healthier’ beverage options
RC Cola brand owner Macay Holdings Inc. is planning to develop “healthier” drinks options in a bid to cut the losses it has been incurring since the excise tax on sugar-sweetened beverages (SSB) has been implemented.
Macay president Antonio Panajon said in a report that the said tax is the government’s message to beverage companies to come up with healthier products.
And to “respond to that”, RC Cola will be investing as much as P1.2 billion to develop new products.
It was in January this year when Tax Reform for Acceleration and Inclusion (TRAIN) law became effective.
As part of its implementation, an excise tax of P6 per liter was slapped on SSBs, while P12 per liter is taxed on drinks with high-fructose corn syrup, a cheaper alternative to sugar.
Because of this, Macay Holdings saw a 61-percent year-on-year decline in its first quarter net income from last year. To be specific, its net profit dropped to P121 million in the first three months of this year, a report in Inquirer showed.