Chio revenue slips on 'chips tax'

Food

Revenue of snack maker Chio Magyarorszag, a unit of Netherlands-based Intersnack International, fell 5% to HUF 11.6bn in 2011 because of the introduction of a tax on unhealthy food introduced last September, managing director Robert Merkler said on Thursday.

The "chips tax" raised the prices of Chio products by 15-30%, Mr Merkler said.

The tax on Chio’s snack products rose from HUF 200 per kilogramme last year to HUF 250 from January 1, 2012.

Chio expects its output volume to edge down 1-1.5% this year, but sees exports lifting revenue by 3%.

Chio controls 22% of Hungary’s snack food market.

Per capita consumption of snack food in Hungary is just 2.7kg a year, under the 3.4kg EU average.

ADVERTISEMENT

Consumer price levels below EU avg in 2020 Analysis

Consumer price levels below EU avg in 2020

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Breast cancer screening at Dr. Rose Private Hospital Interview

Breast cancer screening at Dr. Rose Private Hospital

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.