August 30, 2006

No VAT Campaign

by Guy Brighton

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We’ve featured Innocent Drinks a few times: here, here and here. This time their are getting political…

They are starting a campaign to scrap VAT (value added tax) on their fruit smoothies. The boys and girls at Innocent are arguing, if you don’t pay VAT on frozen chips and pizzas, meat pies, pastries and beef-burgers, why do you have to pay it on something which is good for you and which aids the current UK governments five a day target.

innocent is considering a legal challenge to this anomaly. The legal definition of a beverage is something drunk to ‘increase bodily fluid levels’ and to ‘slake one’s thirst’. Well, this quite clearly does not apply to our product.

Is this a clever marketing ploy or a simple common sense argument to pursue? After all, the customers are the ones who will benefit if the law gets changed by paying less…

Retail Bulletin article link

Article categories: Food & Drink

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