French parliament takes new swipe at energy drinks with tax

After the first attempt was overturned, French parliament made its second attempt to impose a new tax on energy drinks which has caffeine and the amino acid.

In order to control the import, as well as the consumption of such energy drinks such as Red Bull, the world’s most popular energy drink, it is said in Reuters news, “tax of one euro per liter from next year on drinks that contain at least 0.22 grams of caffeine per liter, or 0.3 grams of taurine” will be charged, in the hope of increasing the health standards. Since researchers reported such energy drinks is capable of causing heart and other problems.

Using the SWOT analysis learnt from class, I find that Red Bull is facing threats not only from its competitors like Monster, but also the pressure from French government. Imposing taxes on Red Bull energy drinks is equivalent as putting a production quota on Red Bull’s export to France.

Originally, in 2008, Red Bull regained the opportunity to sell its product after being banned for 12 years due to health concerns, but five years later, this opportunity turns against Red Bull, and currently, it’s been a threat for Red Bull.

Article on Red Bull causing one death: http://www.digitaljournal.com/pr/1589057

Video: Red Bull spread their wings: new flavours and health risks

Hyperlink: http://uk.reuters.com/article/2013/10/24/us-france-energydrinks-tax-idUKBRE99N0LW20131024

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