Table 3.
Industry strategies to sustain the soft drinks market and profitability
| Tactic | Findings | Evidence |
|---|---|---|
| Information and messaging | Industry lobbies directly to influence legislation so that it is favourable to the industry |
Beverage firms decry high taxes: by Nassali Fatiah, 22 February 2018 [44] Producers of soft drinks protest tax increments on products: by Jonathan Adengo, 26 May 2017 [31] President Museveni meets executives of Soft drinks companies: by Linda Nabusayi, 13 April 2016 [45] Against excise duty on carbonated soft drinks: Parliament Watch, 27 h November 2014 [46] |
| Industry stresses its importance in terms of jobs and revenue generation | “We employ about 1,800 Ugandans in our three plants and support more than 90,000 businesses across our extensive retail distribution network. Coca-Cola Beverages Africa is proud to make these contributions on top of paying taxes to the tune of more than Uganda Shillings 140 billion (USD 38 million) annually. We are serious about doing business in Uganda and supporting this economy.” [47] “We shall experience job cuts due to limited sales volumes. We shall also not be able to expand production and create more jobs. The government will also lose out on taxes in the long run.” [31] |
|
| Constituency building | Industry uses corporate social responsibility for constituency building |
Here is Coca-Cola’s sponsorship package to the MTN marathon: by Hassan Kibirige, 17 November 2018 “Coca-Cola is always proud to be part of a good cause and we are passionate about improving maternal health – this year’s marathon theme, both as a Company and at a personal level. This relationship shall continue for many years to come”. [48] |
| Policy substitution | The industry is trying to self regulate itself through introduction of zero sugar products |
Coke unveils more sugar-free soda: by Isaac Khisa, “The major driver (for product diversification) is the changing consumer habits, tastes and preferences … (and) the increased consciousness of health – and that is why we present more healthy options for the more health-conscious consumer to choose from when they need refreshment.” [49] |
Source: Authors’ compilation based on the approach in Mialon et al., (2015) [50]