Coca-Cola Enterprises Reconfirms French Plant Investment

The company will go ahead with plans to inject 17 million euros into its plant in southern France, despite an earlier statement that it was reviewing the project to protest against the tax.

Sep 12 2011 --- Coca-Cola Enterprises has backed down from threats of a symbolic protest against a proposed French tax on soft drinks, with a top executive apologising for a "communication error." The company, which distributes Coke across Europe, will go ahead with plans to inject 17 million euros into its plant in southern France, despite an earlier statement that it was reviewing the project to protest against the tax.

“We regret that our local team caused confusion this morning related to Coca-Cola's sincere commitment to France and the growth of its economy. I would like to set the record straight. We are re-confirming our EUR 17 million investment to our Les Pennes-Mirabeau facility. Let there be no doubt, and let me say it as a Frenchman: Coca-Cola is committed to France. We employ 3,000 people here and have invested EUR 260 million in France over the last six years,” said Hubert Patricot, President, European Group at Coca-Cola Enterprises, Inc.

“Let me also be clear: We remain strongly opposed to a tax that unjustly targets the purchasing power of the French people and one category of beverages under the pretext of addressing public health concerns. Consumer information and education around increased exercise and balanced diets, not discriminatory taxes, must be part of any comprehensive proposal. We remain committed to working with our stakeholders - including the government, nutritionists, and public policy experts - to address the ongoing public health concerns of French citizens,” he added.

The climbdown came after several French lawmakers and Labour Minister Xavier Bertrand criticised Coca-Cola Enterprises' threat, using words such as "blackmail." Last month, France announced a set of austerity measures aimed at securing challenging deficit-reduction goals. As part of the package, it announced a new tax on soft drinks as well as additional taxes on strong liquor and plans to raise tobacco prices.