United Kingdom sugar tax: The experts weigh in
- Author: Eleanor Harrison Apr 08, 2018,
Apr 08, 2018, 0:53
Manufacturers must pay a levy on drinks with a sugar content above five grams per 100mL - and a higher one on those containing more than eight grams - as the government tries to cut down on spiralling obesity levels.
Although applied to manufacturers, the decision of whether the taxes will be passed on to consumers is up to them.
Martin Hook, managing director of Ayming UK, a business performance consultancy specialising in R&D, says that over the last two years manufacturers have been trying to assess how best to balance reformulation costs with tax costs.
Shortly after the 2016 announcement, Lucozade Ribena Suntory launched Lucozade Zero in the United Kingdom, citing "the nation's changing health agenda".
The government hopes the tax will raise £240 million ($335 million, 274 million euros) per year, which it will spend on sports facilities and breakfast clubs.
"Introducing the sugary drinks tax is a great start, but is no silver bullet to tackle childhood obesity".
As a result, we are seeing low calorie soft drinks significantly outperforming full sugar options.
Which other countries have sugar tax? As such, these fizzy drinks will cost customers that little bit more. Top-selling brands such as Fanta, Ribena and Lucozade have cut down the sugar content to avoid the tax already.
Sceptics are also unsure as to whether making sugary drinks more expensive will make a sizeable reduction to the number of consumers buying them.
In response to this, the supermarkets that have changed their recipes include Tesco, Morrisons, Asda and The Co-op. The vast majority of our drinkers want to consume less sugar so that's what we're now offering.
A Coca-Cola Great Britain spokeswoman explained their decision to WalesOnline.
Though there has been a great deal of enthusiasm for the levy, which was welcomed in a notable cross-party consensus when George Osborne put it forward in his Spring Budget 2016, there have been voices of dissent claiming it would do little to impact the high rates of childhood obesity the United Kingdom experiences.
Numerous major flavours of Fanta were overhauled a year ago. The price of a can of coke, which contains about seven teaspoons of sugar, has gone up by 8p.