Coca-Cola Europacific Aboitiz Philippines (CCEAP) is assessing the impact of a proposed sharp increase in excise taxes on sugar-sweetened beverages, as the industry braces for a measure that could reshape pricing, consumer demand, and product strategies across the beverage market.
The company said it is reviewing the proposed ProGRESS tax package while reaffirming its commitment to keeping a broad portfolio of beverages accessible and affordable for Filipino consumers.
ProGRESS tax bill stands for the Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability bill.
The proposal would more than triple the excise tax on drinks sweetened with sugar to P20 per liter from P6, while beverages using high-fructose corn syrup would see the levy jump to P40 per liter from P12.
It would also widen the tax base by covering products currently exempt, including 100 percent fruit and vegetable juices and soy milk, and adding yogurt and ice cream. Annual tax increases of 5 percent to 6 percent are also being proposed.
“We are aware of discussions around a possible increase in taxes on sugar-sweetened beverages. At this time, we are in the process of gathering and reviewing all available information to fully understand the potential implications,” CCEAP said.
The beverage maker cautioned that higher taxes could ripple across the value chain, affecting not only consumers but also retailers, distributors, and thousands of small businesses that rely on beverage sales.
Even so, the company said it remains focused on offering consumers a wide range of beverage choices.
“Our focus remains on continuing to provide Filipinos with a range of beverage choices while supporting affordability and accessibility for consumers,” CCEAP said.
The company also said it is prepared to work with government and industry stakeholders as discussions on the measure continue to ensure the interests of consumers, businesses, and the broader economy are taken into account.
The proposal marks the latest test for beverage manufacturers already navigating shifting consumer preferences and persistent cost pressures.
Beyond raising prices, a steeper sugar tax could accelerate product reformulation, expand lower-sugar offerings, and reshape competition as companies adapt to a changing regulatory landscape while seeking to protect demand.
