The new plant is expected to produce concentrated syrup for Coca-Cola's existing products and could also play an important role in the firm's future innovation strategy. Coca-Cola's decision to base the facility in Ireland is likely to stem from the country's relatively generous corporate tax rates and may also be due to Ireland's policy of tax exemption on patent income.
The growing demand for "functional" soft drinks that offer health benefits has increased the amount of scientific investment needed to develop new drinks, and patents are now playing an important role in protecting firms' intellectual property. Ireland's attitude toward patents has already encouraged several major pharmaceutical firms to relocate to the country, and as the science behind functional food and drink products becomes more sophisticated, a similar trend could be witnessed within the food and drink sector.