Britain’s sugar tax on mushy drinks comes into impact

LONDON (Reuters) – Britain’s sugar tax on mushy drinks got here into impact on Friday, a transfer that can result in some larger costs because the nation seeks to battle childhood weight problems.

Bottles of soppy drinks made by drinks company Britvic sit on a conveyor belt at Britvic’s bottling plant in London March 25, 2009. REUTERS/Luke MacGregor

The tax, introduced in March 2016, has already minimize sugar content material in drinks by 45 million kg per 12 months, Britain’s Treasury mentioned, as over 50 p.c of producers have reformulated their merchandise to be under the levy’s sugar threshold.

“Our teenagers consume nearly a bathtub of sugary drinks each year on average, fuelling a worrying obesity trend in this country,” Public Health Minister Steve Brine mentioned.

“The soft drinks industry levy is ground-breaking policy that will help to reduce sugar intake, whilst funding sports programmes and nutritious breakfast clubs for children.”

Because of the reformulations, the Treasury now expects the levy to boost solely about 240 million kilos ($336 million) in its first 12 months, lower than half of its prior forecast of 520 million.

Soft drink makers together with Coca-Cola, Britvic and Lucozade Ribena Suntory have reformulated drinks, although Coca-Cola Classic, the nation’s top-selling branded mushy drink, is topic to the tax.

Retailers Tesco, Asda and Morrisons have additionally reformulated their own-label fizzy drinks to be under the levy’s threshold.

Reporting by Martinne Geller; Editing by Dale Hudson

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