The proposal to reduce the lower sugar threshold of the Soft Drinks Industry Levy (SDIL) for a second time creates huge disruption to an industry already doing more than any other to reduce sugar intake – for no credible health gain.
The government’s own evidence shows the soft drinks levy won’t deliver significant improvements to public health. The calorie reductions equal just 2.1 calories per day for 11 to 18-year-olds and 1.2 calories per day for adults. Over a year, this is less than a single slice of buttered toast per person.
Improving public health is not simple, but we must operate in a regulatory environment that rewards responsible action rather than punishing it.
An industry hard at work
As a business that has been reducing sugar across our drinks range for over a decade, we care about the health of our consumers. We know what it takes to reduce sugar without compromising taste or functionality, and we’re proud that our long-term vision for health means today none of our drinks are high in fat, salt or sugar.
We know our industry has a vital role in offering a range of choices both with and without sugar, and seven in 10 drinks sold today are zero-sugar.
Not to mention soft drinks now represent less than 6.5% of total sugar consumption in the UK [Worldpanel]. We’ve shown real progress as an industry, and yet the goalposts are now moving and we’re being penalised for the work already done.
The timing of the prospective change couldn’t be worse. At a time when we’re investing to deliver world-class packaging reform in a deposit return scheme, industry is also being asked to potentially reformulate its drinks or push through price increases. Shifting the landscape like this gives producers no certainty or confidence whatsoever.
Unintended consequences
Lowering the sugar threshold for a second time also risks unintended consequences for consumers.
Perversely, given the industry is already meeting changing consumer tastes with innovation in low and no-sugar drinks, SDIL will force producers to drop resource planned against zero-sugar innovation to instead try to reduce half a gram of sugar from their existing drinks (which have already been reformulated from the first time around).
And after a prolonged cost of living crisis and UK food inflation rising again in August, SDIL will only add to price inflation in the category.
But the good news is that there is a better way to deliver change.
Obesity in the UK is driven by a range of complex factors, and we want to encourage the government to take a more holistic approach to public health. There is plenty of evidence showing we must take a whole-systems approach to tackling obesity.
We urge the government to look beyond unnecessary changes to the SDIL and seek to promote active lifestyles and balanced diets, while supporting informed consumer choices. We all want to live in a happier, healthier society – but the proposed changes to the Soft Drinks Industry Levy are not going to get us there.
Elise Seibold, chief operating officer at Suntory Beverage & Food GB&I
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