But a hidden reason to this tax increase also exists. The left wing government from France wants to slash a previous big debt.
Palm oil is used everywhere in cooking and apparently it is also one of Nutella’s key ingredients. At news of the tax increase many Nutella fans were worried that Ferrero will change the recipe for Nutella in France, which also happens to be its biggest markets.
Right now the tax for a tone of palm oil is 100 EUR and after the tax update it will be 400 EUR. Ferrero, the Nutella maker, promises that despite the tax hike it will not change the Nutella recipe. But Ferrero is not the only company that needs to worry. The tax increase also affects biscuits, margarine and crisps(*1) manufacturers that also use palm oil extensively.
Update – November 14:
*1 (We stand corrected. Palm oil is not used in crisps for quite some time. Mr. Andrew Curtis from the European Snacks Association corrected us and further added: “Since 2006, virtually the whole savoury snacks sector in Europe has moved to the use of high oleic sunflower seed oil – which is very low sat fat”)