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


- Last updated on GMT

Related tags France Energy drink

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 news

Related products

show more

Optimize Nutritional Value with DuraLipo™

Optimize Nutritional Value with DuraLipo™

Content provided by INNOBIO Corporation Limited | 02-May-2024 | White Paper

INNOBIO's DuraLipo™ products encapsulates active ingredients within phospholipids, forming a genuine phospholipid bilayer structure.

Vitafoods Europe highlight: Fucoidan

Vitafoods Europe highlight: Fucoidan

Content provided by Marinova Pty Ltd | 08-Apr-2024 | Infographic

Fucoidans are bioactive compounds found naturally in brown seaweeds. Maritech® fucoidans are the world’s only high purity, certified organic fucoidans...

Innovation in convenient formats: vegan gummies

Innovation in convenient formats: vegan gummies

Content provided by Cambridge Commodities | 05-Mar-2024 | Product Brochure

Supplements and vitamins in pill form have been around for decades, but consumers are now seeking alternatives that fit with their busy lifestyles and...

Related suppliers

Follow us


View more