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'Nutella Tax' Could Raise Price Of Chocolate-Hazelnut Spread In France

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NUTELLA TAX
AP

A big new tax on palm oil being debated in France's National Assembly this week is striking fear into the heart of a group that, until recently, didn't even know it had any political significance whatsoever: Nutella fans.

The bill, which has already been approved by a French Senate commission, would increase taxes on palm oil by 300 percent. The lawmakers argue that palm oil, which is high in saturated fats, poses a threat to public health. The production of palm oil in Southeast Asia also been linked to myriad environmental violations, especially deforestation.

Nutella is a full 20 percent palm oil, so if the tax passes, the price of the popular chocolate-hazelnut spread is likely to rise by about 0.06 Euros per kilo, which translates to about three-and-a-third cents a pound.

That may not sound like a lot, but it's been enough to upset some French consumers, who have traditionally been among Nutella's most vociferous fans. It's a common filling for crepes eaten at both breakfast and dessert.

According to Reuters, the makers of Nutella have vowed not to change their recipe, regardless of what happens in the National Assembly this week.

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