Since we launched our film Innocent Drinks, there have been a number of developments to stir up debate.
The first was the acquisition of part of Innocent by Coca Cola – an event we cover in our new release The Power Of The Brand. The benefits to each party are considerable: Coca Cola gets to share in the warm glow of Innocent’s carefully crafted ethical image, and Innocent gets to share in Coke’s brutal but effective distribution muscle – a marriage made in marketing heaven or ethical hell?
Now Innocent has had a run-in with the taxman -- and came second. They believed they should not charge VAT on their smoothies by claiming, essentially, their product is not actually a drink at all, but a liquefied fruit salad, which therefore should not attract VAT.
They also pointed out what they saw as the absurdity of exempting foods like burgers and doughnuts from VAT whilst maintaining it on healthy drinks such as smoothies.
All to no avail – the taxman needs his pound of flesh, or fruit – and if you liquefy it, well, it becomes a beverage, and therefore taxable.
Full story here
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