Coca-Cola bottler says S Africa sugar tax may hit profit

Johannesburg

COCA-COLA Beverages Africa (CCBA), the bottling joint venture between the US soft-drink maker and brewer SABMiller plc, may close South African plants and see profit in the country more than halve if the government pushes ahead with a proposed sugar tax.

South Africa's National Treasury last month recommended a levy on sugar-sweetened beverages that would generate almost 11 billion rand (S$1.1 billion) in government revenue, based on 2012 consumption data cited in the policy paper.

The charge is aimed at reducing consumption of sugar and encouraging producers and suppliers to cut the sugar content of their drinks, according to the governme…