Coca-Cola-Europacific Partners (CCEP) is planning to up its prices on full-sugar Monster lines but keep some price-marked packs (PMP) unchanged. A move that will squeeze store margins, according to wholesalers.
The changes coincide with the government’s decision to increase the soft drinks industry levy, known as the sugar tax, from 1 April.
Senior wholesale figures told Better Retailing that CCEP had notified them of upcoming price rises on key full-sugar Monster lines including £1.65 and £1.75 PMP single cans and its £5.49 PMP four-packs.
One of the sources said: “CCEP said the changes are due to the sugar tax.
“The PMP will remain the same across several lines, but we’re being hit by price increases across six varieties.
“The price increases will be thousands of pounds in annual costs to us.
“The sugar tax is a tax to the consumer. It’s not fair that CCEP is forcing wholesalers and retailers to absorb the costs.”
Another added: “We’ll potentially have to increase our price to retailers to make up for the increases. I don’t see why CCEP isn’t coming up with a way they can work with us to find a work around. Monster is a best-seller in convenience. The general public isn’t going to mind an increase of a few pence.”
Single can format Monster likely to be most affected
One senior industry source said they would likely see single can formats impacted the most, due to demand. They added: “We have pushed back and Monster appears to be the key issue here.
“We don’t believe it is appropriate to reduce retailers’ margins due to the sugar tax increase.
“It feels particularly bad timing to take this approach as costs of operating for retailers are increasing again in April, due to rises in wages and National Insurance.”
The sources added that no other soft drinks supplier had sent communication about price increases.
Increases to sugar tax rates
From 2018, soft drinks containing at least five grams of sugar per 100ml became liable for a tax to help tackle obesity rates across the UK. From 1 April 2025, the lower rate of 18p per litre will increase to 19.4p. A higher rate of 24p per litre will also increase to 25.9p.
Asked by Better Retailing to defend the margin squeeze, a CCEP spokesperson responded: “The industry has faced increased costs across key commodities for some time now due to external factors beyond its control.
“As a business we have taken steps to mitigate the impact of these cost pressures where possible.
“The recommended prices on Monster PMPs are intended only as a guide for retailers, and there are plain packs available as well.”
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