Pepsi rebrands, appeals to Govt on taxes

Mar 06, 2024

“This is meant to showcase Pepsi’s new visual identity. It borrows equity from our past while incorporating modern elements to create a look that is current and appealing to the new generation,” he said.

(L-R) Ernest Ssentongo Brand Manager Crown Beverages, Rogers Anguzu Commercial Manager Crown Beverages and Kazoora during the Pepsi unveil new look at Sheraton Hotel on March 1, 2024. Photos by Nancy Nanyonga

John Ricks Kayizzi
Journalist @New Vision

Crown Beverages, Uganda’s oldest beverages company has unveiled a new logo for its flagship product - Pepsi Cola.

Ssentongo Ernest, the Pepsi Cola’s Brand Manager who unveiled the new look at Sheraton Kampala hotel recently, termed the move as its first major global redesign in fourteen years.

“This is meant to showcase Pepsi’s new visual identity. It borrows equity from our past while incorporating modern elements to create a look that is current and appealing to the new generation,” he said.

The logo, which was first unveiled in the US has been similarly launched in over 120 countries worldwide, through various consumer touchpoints – spanning digital, experiential and retail.

Ernest Ssentongo Brand Manager Crown Beverages addressing journalists about the Pepsi unveil new look at Sheraton Hotel on March 1, 2024.

Ernest Ssentongo Brand Manager Crown Beverages addressing journalists about the Pepsi unveil new look at Sheraton Hotel on March 1, 2024.

He said the launch of the new logo rhymes well with their sponsorship of the Davido timeless concert on the 29th of March.

Ssentongo said the new logo was developed through a competitive process held globally, where people worldwide were asked to draw the Pepsi logo as part of the design process.

“The majority included the Pepsi name as part of the proposed logo. We chose to embrace that as our new identity.”

Rogers Anguzu, the firm’s Commercial Manager, said in 2024, fans countrywide should expect to see more from Pepsi through existing partnerships.

He, however, decried Government’s imposition of a 25% tax on industrial sugar imports, saying it has tormented the beverages sector and cut into their profits.

During his Budget Speech for the 2023/24 financial year, Matia Kasaija, the Finance Minister increased duty remission on industrial sugar from 10% to 25%.

“Government should remove the high tax on industrial sugar, which is making it too expensive for us to afford. This is preventing us from sourcing cheaper raw materials for our production line. It leaves us at the mercy of local manufacturers whose capacity is insufficient for the local market,” he said.

“The price for locally produced industrial sugar, which stands at $1,015 (sh3.7m) per tonne is already a disadvantage compared with that of imported sugar, which stands at $900 (sh3.3m) per tonne.”

Dr Ezra Rubanda, the UMA executive director, also recently said that the Government introduction of the new tax regime was premature since there isn’t enough industrial sugar to sustain the local demand. 

“Our counterparts both in Kenya and Tanzania still enjoy the 10% import duty on their industrial sugar imports, and are likely to out-compete Ugandan manufacturers of similar products,” said Rubanda, adding that beverage and confectionary manufacturers are likely to collapse in a similar way Ugandan milk producers did when the Kenyan market was closed to them."

URA, however, defended the taxation policy, saying it represents a compromise position that protects local producers of industrially refined sugar while also leaving the door open to imports for any user that requires it for technical reasons.

Some local manufacturers, however, referred to the 25% duty as being in line with most other finished products produced in Uganda, and that it's against the total ban on imports that had been proposed earlier.

Producers of industrial sugar had been complaining about a lack of market due to massive importation.

Crown Beverages Limited holders of the Pepsi cola franchise recently opened a $90m beverages factory plant, and Aquafina bottled water brand in the country.

The company already bottles and markets other carbonated soft drinks including Mountain Dew, Mirinda Fruity, Mirinda Orange, Mirinda Pineapple, Mirinda Green Apple, Evervess Tonic and Nivana flavoured waters.

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