Britain's sugar tax on soft drinks comes into effect

Suntory Beverage & Food

06/04/2018 11:26

LONDON, April 6 (Reuters) - Britain's sugar tax on soft
drinks came into effect on Friday, a move that will lead to some
higher prices as the country seeks to battle childhood obesity. 
    The tax, announced in March 2016, has already cut sugar
content in drinks by 45 million kg per year, Britain's Treasury
said, as over 50 percent of manufacturers have reformulated
their products to be below 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 said.
    "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 raise only about 240 million pounds ($336 million) in
its first year, less than half of its prior forecast of 520
million.
    Soft drink makers including Coca-Cola  KO.N , Britvic
 BVIC.L  and Lucozade Ribena Suntory  2587.T  have reformulated
drinks, though Coca-Cola Classic, the nation's top-selling
branded soft drink, is subject to the tax. 
    Retailers Tesco  TSCO.L , Asda  WMT.N  and Morrisons  MRW.L 
have also reformulated their own-label fizzy drinks to be below
the levy's threshold.  urn:newsml:reuters.com:*:nL5N1RG47C   
($1 = 0.7136 pounds)

 (Reporting by Martinne Geller; Editing by Dale Hudson)
 ((martinne.geller@thomsonreuters.com; +44 (0) 2075420797;
Reuters Messaging: martinne.geller.reuters.com@reuters.net))