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.