The Coca-Cola corporation argues that implementing a sugar tax would result in significant price increases for consumers and jeopardize jobs, citing the massive administrative effort it would require. John Galvin, Coca-Cola’s head in Germany, told the newspapers of the “Redaktionsnetzwerk Deutschland” that the proposal constitutes “an administrative nightmare, not just for a large manufacturer like us.”
The required processes would necessitate the tax classification of different beverages, mandatory quantity documentation, calculation of tax amounts, and the establishment of enforcement controls. Galvin stressed that the retail trade would face equally massive complications, noting that cashiers would be required to calculate individual bottles when dealing with mixed beverage boxes. He added that shifts in mixed assortments are crucial for many retailers, and these changes could quickly endanger employment.
Galvin confirmed that the tax would lead to higher prices, stating that consumers in the current economic climate “would have to pay more than before.” This price hike is a core aim of the tax, designed to discourage the consumption of sugary drinks. However, he criticized the idea, arguing that the state should not dictate what people are allowed to eat or drink, adding that the beverage industry has already made voluntary efforts to reduce sugar content.
According to the plans put forward by Finance Minister Lars Klingbeil (SPD), the sugar tax is slated for introduction in 2027, though it has not yet been formally approved.
