“The progress made in the milk-based drinks category is incredibly impressive,” she said. Emmi Caffé Latte revamp | Relaunched: October 2020 | Manufacturer: Emmi | Shopper demand for clean labelling is behind Emmi’s reformulation of its Caffé Latte variant. Take Yazoo and Frijj – big sellers aimed at young people. One might suggest that this is steeped in irony, considering that France is also subsidizing sugar. Sugar tax: what does it mean, which drinks will be affected, and will it work? The new legislation also imposes a fee on entrepreneurs selling alcoholic beverages in bottles not exceeding 300 ml (so-called monkeys). In July 2015 the British Medical Association (BMA) urged the governmentto introduce a 20 per cent tax on sugar, saying it would combat escalating rates of obesity and type 2 diabetes. As part of George Osborne's 2016 Budget, he announced a sugar tax on the soft drinks industry. However, suppliers and campaigners have cited both as giving the category a bad name – particularly because of their large packs. Shaken Other | Launched: August 2020 | Manufacturer: Shaken Udder | Originally pitched to supermarket buyers three years ago, premium milkshake brand Shaken Udder finally brought its Shaken Other dairy alternative drinks to market in August with coconut-based Strawberry and Chocolate variants (rsp: £1.60/330ml). It could also kill off its sugar tax threat. This policy intervention is an effort to decrease obesity and the health impacts related to being … Action on Sugar says the levy’s lower threshold could be set at 40 calories per 100ml, with the upper one at 53 calories. By continuing to browse our website, you are agreeing to our use of cookies. If the soft drinks levy is anything to go by, that extra cost may well deter shoppers. Drinks with more than 8g per 100ml will face a tax rate equivalent to 24p per litre. Take-home sales rose 8.4% to £221.5m on volumes up 3.2% [Kantar 52 w/e 12 July 2020]. “We need a levy model that acknowledges the naturally occurring lactose-based sugars – an energy density model would do that better than just a pure sugar model,” suggests Sustain Children’s Food Campaign coordinator Barbara Crowther. Dairy UK was keen to trumpet the findings. Iced coffee drinks saw a similar pattern. Retailers became “more and more keen” on larger formats as lockdown went on, says the brand. After all, it took the lead in the sugar reduction programme – and, in 2018, gave suppliers the chance to either reformulate or risk facing an extension to the sugar tax. On 25 August 2020 the President signed an Act amending certain acts in connection with the promotion of healthy consumer choices. The report was well received by sugar tax campaigners such as Action on Sugar and celebrity chef Jamie Oliver. New calls for Australia to introduce a sugar-sweetened beverages tax have sparked an outcry from the food and beverage industry and provoked resistance from politicians. At least, that’s what the sales figures suggest. We speak to dairy hero Gemma Smale-Rowland of Cornish Moo about her passion for British agriculture and why it’s more important than ever to reconnect people with farming, The Grocer Own Label Accreditation Scheme, Mars blames virus outbreak for 2020 profit and sales slowdown, Clover unveils ‘reassuringly imperfect’ digital marketing campaign, The Grocer’s Dairymen Podcast: Davina Bruce, McQueen’s Dairies, The Grocer’s Dairymen Podcast: Gavin Wallace, Müller Milk & Ingredients, The Grocer’s Dairymen podcast: Gemma Smale-Rowland, Cornish Moo. To read the report, subscribe here. The standard rate of 18p per litre applies to drinks with a sugar content between five and eight grams of sugar per 100 millilitres. It's predominantly imposed by cities, not at the state or federal level, and cities have varying rules as to exactly which beverages qualify. Under this act, the provisions on the new tax on selected food products (the so-called sugar tax) will come into force on 1 January 2021. See breakfast and protein drinks – both of which are synonymous with on-the-go. Between 2015 and 2019, there was a 22.1% decline in the sales-weighted average sugar levels per 100ml of milk-based drinks, Public Health England (PHE) reported in October. This article is part of The Dairymen - our annual guide to the dairy industry that’s packed with insight and analysis on all the latest trends. The new tax should be seen as a welcome first step and perhaps it will ignite an attitude change, writes Ciara Wright. A sugary drink tax (US $0.01/30g) in Berkeley, California was introduced in 2014. Public health advocates say an SSBT in Australia and New Zealand could help reduce consumption of SSBs and thereby reduce obesity and other associated diseases. You can learn more about cookies by visiting our privacy & cookies policy page. A sugar tax 'won't solve the obesity crisis'. The variable fee is 5 gr per gram of sugar over 5 grams/100 ml, calculated per litre of beverage. It is to amount to PLN 25 per litre of 100% alcohol sold in bottles of up to 300 ml. The fee shall be paid on a monthly basis. Henry Dimbleby’s National Food Strategy omitted any suggestion of extending the levy to include milk drinks. A sugar tax is a tax on sugary drinks, also called a Sugar Sweetened Beverage Tax (SSBT). This is in line with guidelines from the NHS Commissioning for Quality & Innovation framework, he adds, “and allows for roughly 5% natural milk and 5% free sugars”. This website uses cookies. Sugar tax: the soft drinks that slashed their sugar ahead of the levy. No wonder Weetabix upped its marketing spend over the summer, replacing its planned push at the cancelled Reading Festival with TV slots during ITV2’s primetime scheduling. The soda tax is technically a “sweetened drink” tax that's imposed in some locations, equal to a few cents per ounce. Saudi Arabia In June Saudi Arabia became the first Gulf country to have a sin tax, which covers a 100% tax on energy drinks and cigarettes, and a 50% levy on carbonated drinks. The benefit is that it would not penalise manufacturers for using whole milk. Today, 6th April, the UK government have introduced a new tax on sugary drinks in an attempt to reduce the level of obesity in the UK. A new sugar tax on the soft drinks industry will be introduced in the UK, the chancellor has announced as he unveiled his Budget. who are producers who retail, purchasers of beverages within an intra-Community supply of goods or importers of such beverages; who are ordering parties, if the composition of the beverages subject to this tax constitutes part of the contract concluded by the producer and if it concerns the production of those beverages for the ordering party. However, the new Labour-led government appears to disagree and is believed to be planning to introduce its own sugar tax policy. Conversely, Co-op sales were dented because the retailer’s impulse fixture “was not part of the shopper mission”, Kelly says. The so-called new normal could see this figure rise, Varlow suggests. “You’d either need to include only the free sugars added to the product, or you’d need to raise the threshold from 5g to 10g per 100ml to account for natural sugars.”. An extension of the levy has been mooted since it first shook up the soft drinks sector back in 2018. “You can’t say to people a whole milk drink is bad for you and carries a sugar levy. In the paper they argue: “Obesity is a global epidemic and a major risk factor linked to the growing burden of non-communicable diseases (NCDs) including heart diseases, type 2 diabetes and some forms of cancers. “The lactose content of milk is nearly 5g per 100ml – the lower threshold for the current soft drinks levy – so whole milk would be taxed,” says Crediton Dairy head of marketing & insight Abigail Kelly. A sugary drink tax, soda tax, or sweetened beverage tax (SBT) is a tax or surcharge (food-related fiscal policy) designed to reduce consumption of drinks with added sugar.Drinks covered under a soda tax often include carbonated soft drinks, sports drinks and energy drinks. Małgorzata Górska-Welikan, Lawyer, Tax Advisory Department. Just two weeks later a University of Cambridge study highlighted why a sugar tax could be so beneficial. If the tax is not paid within the deadline, the head of the tax office will be obliged to determine, by decision, an additional fee (penalty fee) in the amount corresponding to 50% of the fee due. With the sugar tax coming into effect later this year, it's important we all know how it will affect us and what the legislation means. Yazoo owner Friesland Campina says its sugar reduction plans “are in line” with PHE targets, while Müller, maker of Frijj, claims to have “taken proactive steps” to cut its sugar. Tax on drinks with more than five grams of sugar per 100ml will be levied by 18p per litre, while those with eight grams or more of sugar per 100ml will … Another factor that makes a levy unlikely is the demise of PHE. Despite the progress made by dairy drinks in PHE’s October report, Action on Sugar chairman Graham MacGregor said the general rate of change across all categories made it “abundantly clear that the government’s voluntary sugar reduction programme is simply not working”. Health campaigners continue to push for punitive action on dairy drinks. There could be an opportunity to rely less on the on-the-go occasion, too. Introduced in April 2018, the levy applies to all soft drinks with added sugar that are produced or imported into the UK. In this episode, we chat to dairy hero Gavin Wallace, a former BBC sports and travel reporter, about entering the fray as a tanker driver for Müller Milk & Ingredients to help keep fridges in Scotland full during the pandemic. In yet another move to crack down on fun public health hazards, the French government reached an agreement with the parliament for a new tax on sugary drinks. Those containing 5-8g of sugar per 100ml will face a slightly lower rate of tax, of 18p per … “To commit to realistic portion sizes as a way of reducing sugar intake is an opportunity at the moment, but it may not be there if they’re brought into the levy.”, “We need a levy model which acknowledges naturally occurring lactose”. Restrictions in the out-of-home sector have pushed dairy drink shoppers towards retail. CEO Judith Bryans branded them “fantastic”, and a “testament to the dedication of dairy processors to reducing the sugar content of their products”. Although they suffered a sales decline in spring, they quickly recovered in summer. Under this act, the provisions on the new tax on selected food products (the so-called sugar tax) will come into force on 1 January 2021. This means that sugary drinks could cost more money to buy. How to effectively run a company in the new business reality? The FrieslandCampina-owned brand will launch two flavours in the new format, carrying limited edition artwork, The coronavirus crisis exacerbated a tough 2020 for the UK arm of the company, The dairy spread brand will target parents with its new ‘Spread the Real Love’ campaign, In this special podcast series we speak to six inspiring dairy heroes who went the extra mile to keep Brits’ favourite dairy products on shelves and in fridges during the coronavirus pandemic. Because, despite the many voluntary moves, there are still plenty of  sugary dairy drinks on sale. Shaken Udder has cut levels by as much as 26% across the majority of its lines. Coca-Cola South Africa said the new sugar tax will lead to the loss of more than 1,000 employees. Still, opponents of a levy argue sugar content isn’t the whole story. “A 400ml pack size is just too big,” says Action on Sugar’s Gabriel. Indeed, Action on Sugar nutritionist Holly Gabriel is “not convinced” an extension to the levy will happen anytime soon. That’s primarily because of the great strides dairy drinks have made in reformulation. What’s more, these efforts don’t seem to have hampered their appeal. Or will pressure from campaigners put the issue back on the table? On the face of it, the idea of a tax on dairy drinks seems as likely as the image-conscious chancellor emerging from 11 Downing Street with a milkshake moustache. Under the new provisions, entrepreneurs will pay tax on beverages: The obligation to pay the new sugar fee will arise when the products are put on sale. The fixed fee is 50 gr per litre of a beverage with added sugar or sweetener, 10 gr per litre of a beverage with added active substance (caffeine or taurine). That’s the question on the lips of suppliers and health campaigners alike. ... New sugar tax confirmed in fight to combat rising obesity. In 2014, Mexico enacted a tax of approximately 10% (one peso) per litre on all sugar-sweetened beverages, excluding dairy or alcoholic beverages, as well as an 8% tax on “junk food” such as chips and candy. Weetabix has lowered the amount of sugar in its drinks by 17% since their 2014 launch. It's payable when consumers purchase soft drinks or similar beverages. Two years on, the industry has heeded that warning and upped its reformulation efforts. And Jimmy’s has reduced its core range from 5.5g sugar per 100ml to 4.6g – below the 5g threshold of the soft drinks levy. At the same time, this approach could lead to the likes of Yazoo and Frijj, which weigh in at above 60kcal and 70kcal per 100ml respectively, adding about 10p to the price of each drink to cover expenses. The new levy hits drinks containing sugar and sweeteners as well as caffeine, such as coke, heavily sweetened fruit juices and energy drinks. It’s like saying eating an apple is bad for you when it’s getting five McDonald’s a week that’s really bad. They slumped about 60% in volumes year on year during the initial phase of Covid-19 [IRI 4 w/e 19 April 2020]. According to the Excise Department, these taxes will be cut by 20-30% over the first three years of the policy, beginning on September 16. to reduce sugar consumption (8). ... G eorge Osborne is introducing a new sugar levy on the soft drinks industry to combat obesity. “They might not be in their car going to work, but they still need a convenient and tasty breakfast solution.”. They’ve been trying to juggle home schooling, Zoom calls and housework. The Minister of Finance responded to a parliamentary interpellation concerning the payment of dividends on the grounds of transfer pricing. Register for FREE guest access today. Drinks that have between 5g and 8g of sugar per 100ml will be subject to a 20 cent tax per litre, and drinks with under 5g of sugar won't be taxed at all. As did Boris Johnson’s much-hyped anti-obesity programme. Or campaigners insist there is a third way, based on calorie content. Automation of office processes. The Act provides for the introduction of a fee on sweetened beverages, which will be divided into fixed and variable parts. Here’s how it’s been impacting small businesses so far. Indeed, reformulation examples are rife across many of the big brands. The Chancellor of the Exchequer, George Osbourne, announced the new tax as part of his … “The fact we had lovely weather, coupled with people getting used to their new shopping behaviours and ways of life, meant people carried on buying into iced coffee,” says Crediton Dairy head of marketing & insight Abigail Kelly. Business News. Some retailers have better complemented iced coffee with their ranging  than others, she adds. This sugar tax will be payable by natural and legal persons as well as organisational units without legal personality: The fee shall not cover, inter alia, medical devices, registered food supplements as well as baby food and infant formulae. The new tax will be applied at 30 cent per litre if the drink has over 8g of sugar per 100ml. The Ministry of Finance is currently working on a draft amendment to the income tax acts. So suppliers may have to lower their costs to health instead. Will Rishi Sunak slap a sugar tax on dairy drinks in his 2021 Budget? “It shows the willingness and ambition of industry to reformulate their products, working with PHE.”, “The progress made in the milk-based drinks category is incredibly impressive”. • Evidence shows that a tax on sugary drinks that rises prices by 20% can lead to a reduction in consumption of around 20%, thus preventing obesity and diabetes (9). On 25 August 2020 the President signed an Act amending certain acts in connection with the promotion of healthy consumer choices. So will dairy drinks manage to dodge the chancellor’s sights? The revenue from fees for alcoholic beverages in bottles up to 300 ml and financial penalties for failure to pay the fees on time will constitute 50% of the NFZ's revenue and 50% of the revenue of the municipalities in which such beverages are sold. The new sugar tax: Has the government gone far enough? Entrepreneurs conducting wholesale trade in alcoholic beverages will be obliged to calculate and pay the aforementioned fee to the account of the competent tax office no later than by the end of the month following the end of a six-month period. That’s primarily because of the great strides dairy drinks have made in reformulation. MacGregor went on to call for PHE’s replacement to “implement comprehensive and compulsory reformulation targets across the whole of the food and drink industry to gradually reduce the amount of sugar”. It was thought the tax would raise £500 million a year but new estimates suggest it will be closer to half that amount as a number of manufacturers have decided to lower the sugar … Mars Vegan Oat | Launched: July 2020 | Manufacturer: Mars | Mars’ oat-based dairy alternative milkshake promises “the distinctive chocolate, caramel, creamy flavour” of the brand’s chocolate and follows the launch of the Galaxy and Bounty vegan variants last year (rsp: £1.50/250ml). The body has now been replaced by the National Institute for Health Protection, leaving the future of the voluntary reformulation programme in doubt. Savings on healthcare • Estimates suggest that, over 10 years, a tax on sugary drinks of 1 cent per ounce in the United States of The Act provides also for an additional fee to be charged for not paying the fees on time. Thailand will phase in a sugar tax over six years in a bid to help drinks manufacturers to lower their sugar content and take advantage of a simultaneous lowering of tax on sugar-free beverages. The contentious new sugar tax came into effect on 4 April, raising the prices of many sugary drinks. Transfer pricing documentation and the payment of dividends. Automation of office work brings an opportunity to improve efficiency, but it is also a big challenge which is being faced by more and more companies. Take-home sales grew 8.4% to £221.5m in the past year [Kantar 52 w/e 12 July 2020]. We need perspective on that.”, The naturally occurring sugars in dairy leave policy-makers with two options, according to Shaken Udder co-founder Andrew Howie. “Shoppers and consumers have still been busy at home; it is just a different busy. From today, the UK's tax on sugary drinks such as coca-cola, fanta, and lucozade, will mean that shoppers are paying an extra 18p or 24p per litre … Business tax Soft Drinks Industry Levy: detailed information From: HM Revenue & Customs. A digital campaign on Facebook and YouTube is also underway. The two brands contain between 8.9g and 10.9g of sugar per 100ml. The sugar fee for sweetened beverages and a financial penalty for failure to pay it on time will constitute NFZ revenue (96.5%) and state budget revenue (3.5%). In our sixth and final episode, we chat to dairy hero and milkwoman Davina Bruce about her 40 year career delivering milk to the people of Fife, and how she put off retirement to keep her community supplied over lockdown. It’s comprised of two parts: a fixed payment of 0.50 złoty (11 cents) per liter and a variable payment that depends on the amount of … The idea of compulsory targets could significantly shake up dairy drinks. For flavoured milk substitutes, that figure was 5.3%. This marked a “tough” time for Weetabix, says the brand’s general manager for on-the-go, Emma Varlow. Research commissioned in May 2019 by Weetabix found 67% of breakfast drinks were consumed in the home. Sales have recovered somewhat as lockdown restrictions have eased, she adds, and she is optimistic about further recovery. Crediton has seen a back-of-store offer at Asda lead to a “climb and climb” in iced coffee sales over the past six months. Arctic Caramel Latte 1l | Launched: September 2020 | Manufacturer: Crediton Dairy | Having added its first one-litre format in June via its Café Latte variant, Arctic followed it with Caramel Latte in September (rsp: £2). Many well-intentioned suppliers were “crying out for a level playing field, which can only be achieved by setting mandatory targets for calorie and sugar reduction”, he added. ... Work out the sugar content of your diluted … Between 2015 and 2019, there was a 22.1% decline in the sales-weighted average sugar levels per As part of the brand’s Real Barista Quality Ingredients initiative, additives such as stabilisers and thickeners have been removed. The introduction of Sugar Tax in the UK has been an ongoing debate. with the active substance - caffeine or taurine. Poland: Sugar tax, alcohol and food measures included in legislation Poland: Sugar tax, alcohol and food measures Poland's parliament on 14 February 2020 passed legislation to promote healthy consumer choices and that, with these goals, would impose an additional “fee”—a sugar tax—on beverages containing substances used for their sweetening properties, caffeine, and … “The soft drinks levy has shown that this approach is both best for business, and best for everyone’s health.”. By Henry Sandercock2020-11-05T15:29:00+00:00, Dairy drinks have escaped the soft drinks levy so far. A Policy Paperreleased by government in July 2016 outlined the proposed sugar tax. How can companies adapt their strategy to new situation so as to facilitate their operations in the post-pandemic reality? Sugar tax - … Evidence shows imposing a new sugar tax in addition to the general sales tax on the beverage industry may improve public health at large. NCDs are the leading causes of mortality globally, resulting in more deaths than all other causes combined, and the world’s low and middle-income populations are the most affected. Th… Nevertheless, dairy businesses aren’t entirely clear of the chancellor’s gaze. This would send the wrong message on how to eat and drink healthily, she believes. The chances of that have been further reduced by the postponement of 2020’s autumn Budget, she adds. Not logged in before? Not to mention the launch of two recent health programmes that failed to mention the sugar tax in any form. But that’s not to say the sector hasn’t taken any hits. 10 mistakes to be avoided. But two years on, momentum from anti-sugar campaigners is growing. The sugar tax came into force on April 6, 2018, after hopes of a U-turn by PM Theresa May were dashed. The message was clear: if dairy drinks don’t get their act together, they’ll be next in line. 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