Zest-O to close down facilities as losses grow
Homegrown brand Zest-O Corp. is now contemplating on the idea of closing down some of its factories as they continue to bleed from higher taxes imposed under Tax Reform for Acceleration and Inclusion (TRAIN) law.
In a report in Philippine Star, Zest-O Corp. Chairman Alfredo Yao said his company was badly hit by the excise tax on sugar sweetened beverages, which resulted in double digit losses in sales in the first quarter alone.
The company is behind the products like Zest-O juice drinks and fruit sodas.
As if the excise tax was not enough, the company is also affected by the recent increase in the price of sugar nationwide.
“Hopefully the market will get accustomed with the pricing. Meanwhile, sales have been on a decline. We are really affected,” Yao said in the report.
Founded in 1981, Zest-O has been a household name in the country. It also has production plants overseas.