The UK's Sugar Tax On Fizzy Drinks Vision One

Market Research News

The UK’s Sugar Tax On Fizzy Drinks

The cost of fizzy drinks in the UK are set to rise heavily, due to the new sugar tax that is being implemented. The charge has been implemented in order to fight against the issue of obesity. Campaigners have said this will not be the “silver bullet” to solve the predicament.

Ministers insist that the money which is raised from the sugar tax will be spend on improving child health. In February, ministers announced that £415million would be pumped into schools. Helping pay for the likes of after-school activities and healthy eating.

Manufacturers of soft drinks will pay the Treasury 18p per litre if their product contains 5g of sugar per 100ml, or 24p per litre if the sugar level is over 8g per 100ml. This cost will be passed onto the retailers and customers, with pure fruit juices and milk based drinks being excluded from the tax.

Some manufacturers have lowered the sugar totals in their products. Manufacturers such as Fanta, are lowering their 10g per 100ml to fall below the 5g limit. Coca Cola have lowered their 1.75l bottles to 1.5l, lowering the total sugar from 185.5g to 159g, however the cost is increasing from £1.79 to £1.99, with 36p being sugar tax. Coca Cola have stated that they have no plans in changing their recipe to reduce the sugar content. Their reason being, "people love the taste and have told us not to change".

Sugar and Glucose Meter Vision One

The max daily sugar intake for 4-to-6 year olds is 5 cubes, 7 to 10-year-olds is 6 cubes and 11+ year olds is 7 cubes. The sugar inside of a typical energy (500ml) is 13 cubes, a simple cola can (330ml) is 9 cubes, with a juice pouch (200ml) being 5 cubes. Source: Public Health England

What's the verdict on the sugar tax changes?

If these changes to the sugar versions on the drinks affect the consumers; whether it be the taste or the cost, then these products purchases and popularity should in theorem increase.

Ed Morrow, a spokesman for the Royal Society for Public Health. Has out and proposed that the sugar tax was “just a part of the overall picture”. He adds “It’s a key plank in what we hope now will develop into a more ambitious obesity policy from the Government.”

Public Health England have stated that by reducing the amount of sugar which is consumed by children could save 80,000 lives in a generation, saving the NHS £15billion.

Five countries have tried taxing soft drinks, resulting in a fall in sales of sugary soft drinks by up to 25 per cent, from the likes of Mexico, France and Norway.

But will this strategy work? The jury is still out, but questions being raised are that consumers will still want these products; regardless of the sugar levels. Meaning that everyday people could just be receiving an increased cost for the goods that they desire.