With many Governments of the world taking a closer look at food related products in their quest to keep their citizens fit and healthy many industry experts are predicting that some of the major food and beverage manufacturers may soon take a hit in regards to their share values.
This is due to the potentially devastating “sugar tax” that many Governments are considering adding to any food or beverage products that have a high level of sugar in their ingredients, and also due to many products possibly also having to have health warnings placed on their packaging.
Back in October TV Chef Jamie Oliver, stood in front of the Health Select Committee to air his points towards a ‘sugar tax’ being imposed in the UK and how to tackle childhood obesity.
Below is the video from his hearing provided by Channel 4 News:
The changes in regards to the way food and beverage products will have to be packaged is similar to the way that tobacco products now have to have a very prominent health warning on the front and back of their packaging.
What does this mean for you as a Binary Option trader? Well depending on just which countries adopt this new packaging policy that could have a knock on affect of their products being less sought after by consumers due to those consumers finally discovering the sugar content and the potential health risks of eating and drinking those products.
That would mean that there could be a downturn in the number of products sold by those major companies such as Coca Cola and McDonald’s as consumers opt to purchase much healthier alternatives.
With that in mind if you are considering placing any long term Binary Options trades in the coming weeks and months you should keep that in mind.
Whilst there may be several companies who do see a downturn in their profits due to their products being deemed too unhealthy for consumers there will be several companies who may see their products becoming more popular due to them being low in sugar.
Any changes in tax laws such as a sugar tax so also going to hit some of the major companies hard, for consumers are not going to want to pay over the top for their products simply down to the fact that there is a higher sugar make up of those products.
So keep your eyes peeled and your ears to the ground for these new changes may happen much sooner than you think and if so that is when the share values of larger high sugar content food and beverage manufacturers are going to see a possible drop in their respective share values.
