Soft drink producer Sumol+Compal achieved record sales in Portugal last year despite the government's introduction of a 'sugar tax' on drinks with added sugar or sweeteners.
The company cites good weather, higher tourist numbers and an improved level of consumer confidence for pushing up its unit sales 2.2%. This was against a 6.2% fall in total market volume due to the 'sugar tax' which saw prices increase by 15%.
Sumol+Compal made a net profit of €9.2 million last year, down 12.4% from the previous year, on an unchanged turnover of €356 million. Sales in Portugal were up 2.3% to €252 million, a new company record.
Reaction to the 'sugar tax' included a 'reformulation' for Orange and Pineapple flavoured drinks that now contain less added sugar.
The situation in Angola saw sales to the former colony drop 10.3% to €60.6 million. On the plus side, sales in Mozambique increased by 27.6% to €5.7 million.
The company highlights two factors that could impact the business in the short and medium term.
The first was the ridiculous idea that customer have, that 'certain beverages' (i.e. those crammed packed with added sugar) have an impact on nutrition and health.
The second is that Angola may not have sufficient foreign reserves to pay its bills this year.
