The dairy sector has dismissed proposals to include dairy drinks in a new extended sugar tax as “flawed” and “cockeyed”.
Last week, it was revealed the government was consulting on proposals to end the exemption from the Soft Drinks Industry Levy for milk-based drinks, as well as non-dairy substitutes such as oats or rice.
However, the move has been met with concern from the industry, as much of the sugar content in dairy drinks is naturally occurring from lactose. There are fears the government’s “lactose allowance” will not go far enough.
Dairy nutrients
Dairy UK, the industry body representing the sector, said that milk-based drinks are an important way for many to get dairy nutrients.
“Their inclusion in the sugar tax remains a flawed approach and risks pushing consumers towards less nutritious products, ultimately counterproductive to promoting better health outcomes long term,” said CEO Dr Judith Bryans.
This view was echoed by director general of the Provision Trade Federation Rod Addy, who said not exempting lactose in milk-based drinks “defies logic”.
“It is not an added sugar – it naturally occurs in milk in the same way that fructose, glucose and sucrose naturally occur in fruit,” said Addy. “Yet no one would think of slapping a tax on fruit – and in fact, fruit juices remain exempt from the tax under the new plans.”
He added making these lines more expensive would put people off buying them despite them containing “essential nutrients”.
“If the end goal of the SDIL is to encourage healthier diets, discouraging shoppers from opportunities to consume these nutrients is a pretty cockeyed way of going about it.”
Read more: Soft drinks sugar tax hike is a ‘seismic kick in the teeth’
Elsewhere, Emmi UK, owner of RTD coffee brand Emmi Caffe Latte, has said lactose sugars should not be included in any calculations.
“The move to extend the policy to include milk-based drinks is of course more complex due to the intrinsic nutritional benefits associated with dairy, such as protein and calcium, and the fact that much of the sugar content is naturally occurring from lactose,” said John Mulvey, head of marketing at Emmi UK.
Reformulation
Mulvey added that although much of the brand’s offering falls outside SDIL guidelines, should the threshold be lowered, more work will need to be done to meet this requirement.
FrieslandCampina also confirmed it was assessing the recent proposed changes to the sugar tax, while Shaken Udder said it would conduct a review of milkshakes that may be impacted but would not make any decisions until the consultation stage is concluded.
“We’re pleased the government has recognised that milk brings nutritional benefits, including calcium and vitamin B12, in a quick and convenient format by having a lactose allowance within the proposed SDIL framework,” said Andrew Howie, co-founder of Shaken Udder.
Dairy UK is consulting with its members to determine whether the lactose allowance goes far enough to ensure the natural sugar in dairy is not penalised by the extended tax.
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