Mondelez nixes sugar-sweetened beverage tax hike

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August 27, 2026 | 12:00am

MANILA, Philippines — Snack company Mondelez Philippines Inc. has expressed concern over the government’s proposal to raise the tax imposed on sweetened beverages, citing its impact on consumers.

“For our company, we do not support an increase in SSB (sugar-sweetened beverage) taxes for the reason that we already have a tax. And the increase in tax will significantly impact consumers, retailers and the whole chain,” Caitlin Punzalan, corporate and government affairs lead at Mondelez Philippines, said.

She said that a higher SSB tax is expected to affect consumption.

To offset its proposed tax relief measures for middle-income earners and small businesses, the government is looking to raise the excise tax on beverages using caloric or noncaloric sweeteners to P20 per liter from the current P6, and to P40 per liter from P12 for those using high fructose corn syrup.

If implemented, Punzalan said the measure is expected to affect the company’s powdered beverage Tang.

In 2025, she said the company saw a slowdown in snack consumption as consumers were shifting to other formats.

“That’s something that we’re studying to see where we can innovate more so that we continue to provide value for our consumers,” Punzalan said.

Despite the Middle East conflict that pushed up prices of fuel and other goods, she said the firm has maintained its product prices.

“We were able to make sure that we keep our prices at the same level as much as possible because that’s also one way we can support consumers in this crisis,” Punzalan said, noting that consumers are already facing difficulty due to high fuel prices.

The 2026 State of Snacking report presented by Mondelez showed that the Philippines was one of the most consistent snacking markets globally.

Conducted by global market intelligence and research firm Mintel in partnership with Mondelez, the study showed that only five percent of Filipino consumers skip morning and afternoon snacking. This is among the lowest skip rates in all countries surveyed.

It also found that 37 percent of Filipino consumers seek energy-boosting snacks in the morning and 30 percent in the afternoon, reflecting how snacking fills critical nutritional and functional gaps throughout the day.

While Filipino consumers enjoy indulgent snacks, the study showed that finding filling snacks is the primary driver for their snacking behavior.

For Mondelez, these findings show that snacks and beverages are not luxuries but daily nutritional necessities for Filipino consumers.

Punzalan said that more consumers are now making smarter snacking choices.

“We as manufacturers are responding to what consumers want: Great taste, transparent nutrition and appropriate portions. This new consumer demand and resulting industry innovation is a sustainable path to better public health outcomes,” she said.

To encourage mindful snacking, the company aims to offer all its snacks in either individually wrapped portions or feature the Mindful Portion label.

Mondelez Philippines has been in the country since 1963.

In addition to Tang powdered beverages, its other products include Eden cheese, mayonnaise and sandwich spread, Cheez Whiz spread, Oreo cookies, Tiger energy biscuits and Toblerone and Cadbury Dairy Milk chocolates.