Soft drink firms cut sugar to beat tax

Most leading brands of drinks and squashes sold in UK will avoid levy after cutting sugar content

The sugar tax has already prompted the makers of most leading soft drinks to cut sugar. The vast majority of soft drinks and squashes sold in the UK will avoid the tax, which comes in today, according to a survey of major drink brands and supermarkets. Since the policy was announced, more than half of all soft drinks have had their sugar content lowered. Exceptions which will be hit by the new tax and therefore rise in price, include classic Coca Cola and Pepsi.

THE Government’s sugar tax has prompted the makers of most leading soft drinks to cut sugar, The Daily Telegraph analysis has found.

The vast majority of soft drinks and dilutable squashes sold in the UK will avoid the sugar tax, which comes in today, according to a survey of major drink brands and supermarkets.

Since the policy was announced, more than half of all soft drinks have been reformulated to lower their sugar content, the Treasury has revealed.

Exceptions that will be hit by the new tax and therefore rise in price, include classic Coca Cola, Pepsi, 7Up and Britvic Indian Tonic Water.

Under the so-called Soft Drinks Industry Levy, which is designed to cut obesity, drinks with a total sugar content above 8g per 100ml, like classic Coca Cola and Pepsi will be taxed at 24p per litre.

And drinks with total sugar content above 5g per 100ml, like 7Up and Britvic Indian Tonic Water, will be taxed at a lower rate of 18p per litre, also pushing up prices for consumers.

Prices of affected soft drinks will rise in supermarkets as well as in pubs and restaurants, with JD Wetherspoon saying an additional cost of around 10p per drink would be added.

Anticipated revenues of £240 million in the 2018-19 tax year raised through the levy will directly fund new sports facilities as well as healthy breakfast clubs in schools.

While most drinks makers have chosen to reformulate recipes to avoid the tax, some have decided to stick to their recipe over fears of upsetting customers.

Back in 1985, Coca-cola changed its famous secret recipe in a move that sparked a huge consumer backlash that forced the company to revert to the original taste just 79 days later.

Major brands that have reformulated to avoid the tax include Lucozade, Ribena, Irn-bru, Sprite and Fanta.

Earlier this year Ribena reduced its sugar content from 10g per 100ml to 4.6g while Irn-bru cut sugar content down from 10.3g to 4.7g per 100ml.

Robert Jenrick, Exchequer secretary to the Treasury, said: “The Soft Drinks Levy is one part of our plan to tackle

‘A tax on sugary drinks is a positive move forward in tackling this obesity epidemic and tooth decay’

childhood obesity. In the time between announcing this policy and it taking effect today, more than half of all soft drinks have been reformulated to lower the sugar content, including many of the best known soft drinks. We hope that will continue in the months and years to come.”

In England alone, a third of children are obese or overweight when they leave primary school, and evidence shows that 80 per cent of children who are obese in their early teens will go on to be obese adults.

Prof Helen Stokes-lampard, chairman of the Royal College of GPS, said: “A tax on sugary drinks is a positive move forward in tackling this obesity epidemic – but also reversing the shocking increasing levels of tooth decay in younger people – and we also warmly welcome commitments by supermarkets to reduce sugar consumption in their own label soft drinks.”

Findings of a major international study published earlier this week in Lanset articles suggested the sugar tax will succeed in improving health among poorer people.