Breaking News on Supplements, Health & Nutrition - Europe US edition | APAC edition

Read more breaking news



Red Bull welcomes French court action to strike out energy drink tax

By Ben Bouckley+

Last updated on 18-Dec-2012 at 17:18 GMT2012-12-18T17:18:44Z

Red Bull welcomes French court energy drink tax plan strike-out

Red Bull has welcomed a ruling from France’s highest constitutional court striking-down the government’s plans to tax caffeine and taurine-rich energy drinks from 2013.

The Conseil Constituionnel considered Article 25, situated in a general tax code section of the annual Loi de Finacement de la Sécurité Sociale pour 2013 (Social Security Finance Law 2013),  as part of its consideration of the government’s legislative plans for social security financing.

(The Conseil Constitutionnel ensures that the principles and rules of the French constitution are upheld, principally that statutes conform thereto after being voted through by Parliament, before they are signed into law by president François Hollande.)

The government’s planned to tax energy drinks at €50/hectoliter ($65.9 per US 26.4 gallons), ostensibly on public health grounds, to limit energy drink consumption with alcohol amongst young people in particular.

‘Rational and objective’ criteria lacking

But striking down Article 25, the court stated that the proposal was not based on ‘rational and objective’ criteria; a Red Bull spokeswoman told this morning the firm “welcomes the ruling”.

“It appears that via the parliamentary work establishing this specific contribution [tax], the legislator intended to limit the consumption of ‘energy drinks’ rich in caffeine or taurine, which, mixed with alcohol, have negative consequences on the health of consumers, particularly the young.

“[But] in taxing drinks not containing alcohol, in the fight against alcohol consumption amongst the young, the legislator has established a tax which is not founded on objective and rational criteria in line with the objective followed.

“That, therefore, it has disregarded the demands of Article 12 of the 1789 Declaration.”

Blow to health minister

The tax is a blow to the Hollande administration in France, since health minister Marisol Touraine said in a late-October interview that she favored the principle of a specific tax on energy drinks.

Such drinks contained powerful stimulants, the health impact of which was under investigation by French public health agency ANSES (Agence Nationale de Sécurité Sanitaire), on her request, Touraine added.

But the French court decision will undoubtedly be greeted with relief, especially among smaller energy drink brands.

The owner of one of such French brand, Truc de Fou, told La Nouvel Observateur in October that he would have to lay off staff if the amendment instituting the tax became law.

Coca-Cola Enterprises (CCE) France (which carries Monster and Burn within its French portfolio) did not reply to our request for comment prior to publication.

The full Conseil Constituionnel decision is available in French here .

Related products

Live Supplier Webinars

Polyphenols tipped to become the way to innovate in Sports Nutrition
Alpha & Omega in Sports Nutrition – Using Omega 3’s and A-GPC to improve performance and recovery.
KD Pharma
Orally bioavailable standardized botanical derivatives in sport nutrition: special focus on recovery in post-intense physical activities
Collagen in motion: move freely and keep your injuries in check
Leading manufacturer of gelatine and collagen peptides
Life’s too short for slow proteins. Whey proteins hydrolysates: Fast delivery for enhanced performance
Arla Foods Ingredients
What it Takes to Compete and Win in Today’s Sports Nutrition Market
Sports Nutrition Snapshot: Key regional drivers and delivery format innovations
William Reed Business Media
Gutsy performance: How can microbiome modulation help athletes and weekend warriors
William Reed Business Media
Pushing the boundaries: Where’s the line between ‘cutting edge nutrition’ and doping
William Reed Business Media

On demand Supplier Webinars

High-amylose maize starch may reduce the risk of type 2 diabetes: what does this qualified health claim mean?
Balancing Innovation and Risk in Sports Nutrition Ingredients
Explaining bio-hacking: is there a marketing opportunity for food companies?
William Reed Business Media
Personalized Nutrition – how an industry can take part in shaping the future of Nutrition
BASF Nutrition & Health
Find out Nutritional and ingredient lifecycle solutions and strategies!
Is the time rIpe for I-nutrition?
William Reed Business Media
The Advantage of Outsourcing Fermentation-based Manufacturing Processes
Evonik Health Care
All supplier webinars