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Nichols takes a hit on sweeteners

Nichols takes a hit on sweeteners

Shares in Nichols (NICL) tumbled after the soft drinks group revealed that pre-tax profits for the 2020 financial year could be “materially below current expectations”. This is because the Saudi Arabian and UAE tax authorities have recently brought in a tax of 50 per cent to be levied on the retail price of non-carbonated sweetened drinks. The tax will be applied to drinks that contain natural or artificial sweeteners – including Nichols’ Vimto products. Unlike the UK’s soft drinks levy, it won’t apply to reformulate products.

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