Taxes and Trade Policies: Tax policies can significantly affect Coca-Cola's profitability and financial performance. The company's operations are subject to corporate income taxes, import/export duties and other levies, which can vary widely across countries and regions. Changes in tax policies can affect the company's cost structure and pricing strategies.
Example: In 2017, the UK government introduced a sugar tax on soft drinks , which hit sales of sugary drinks like Coca-Cola. The company responded by reformulating its products to reduce sugar content and introducing smaller packaging to align with the new tax rules.
Coca-Cola relies heavily on water as a critical ingredient in its products. Concerns about uae mobile phone number list water scarcity and environmental sustainability have led to increased scrutiny of the company's water use practices. Governments around the world are implementing stricter regulations and environmental standards, which could impact Coca-Cola's production and purchasing processes.
Example: In 2019, Coca-Cola faced water-related challenges in Kerala, India, where local communities protested the company’s water extraction , citing concerns about depleting water supplies. The company was required to work with stakeholders and implement sustainable water management practices to address these concerns.