One year on from the sugar tax levy
Published on: April 26, 2019
This month marks one year since the introduction of the sugar levy, a tax on soft drink manufacturers that has seemingly transformed the industry.
Introduced on 6th April 2018, the sugar tax levy targeted soft drinks with 5g or more of sugar per 100ml. Manufacturers had a number of options when it came to levy, they could pass the cost onto retails and wholesalers or consumers, but many chose to invest in their product range to ensure the majority of soft drinks they produce were exempt.
Brand response to the levy
Over the past year we have seen a huge rise in the number of sugar free soft drink products entering the market. With reformulated recipes for classic soft drinks, to new and exciting flavours added to sugar free ranges consumers have responded fantastically to the changes.
Whilst this year has not been an easy year for soft drink manufacturers, with a carbon dioxide shortage last summer, the Beast from the East disrupting distribution and uncertainty surrounding Brexit, the industry has thrived despite these challenges, and that includes the levy.
In fact, manufacturer, AG Barr, has reported a revenue growth of 5.6% over the past year, highlighting how well the industry has adapted to these significant changes. Irn Bru in particular has found huge successful since the levy, with over 40% of the brand’s total product range now sugar free.
Overall, research has found that the levy has encouraged an 11% reduction in sugar content per 100ml, with average calorie intake from soft drinks falling by 6%. This positive step forward has many questioning whether the levy will soon be extended to the confectionery market.
Here at Forrest Foods, we stock a vast variety of soft drinks that fall outside of the levy, contact our team today for a cost effective quote.