FDBusiness.com

UK Sugar Tax Adds £5 Million in Soft Drink Retail Sales

 Breaking News
  • Carlsberg Group Delivers Strong First Half Carlsberg Group has increased operating profit organically by 14.2% in the first half of 2018 with all three of its regions – Western Europe, Asia and Eastern Europe – delivering very solid performances. Organic net revenue growth was 5.1%. Reported operating profit rose by 6.0% to DKr4.373 billion (€586.5 million), impacted by negative currency factors [...]...
  • Levi Roots Caribbean Snack Pots Launched by Aimia Foods Aimia Foods is introducing to the market ‘Levi Roots Caribbean Snack Pots’, a range of On the Go Instant Snack Pots, that consumers simply add hot water to and stir for ease of preparation. Using natural, clean ingredients, the products have an authentic, home cooked taste and incorporate the Levi Roots Caribbean vibe, flavours and recipes. Michelle [...]...
  • National Food & Drink Business Conference and Exhibition 2018 – Citywest Convention Centre, Dublin – Wednesday, September 5th The National Food & Drink Business Conference and Exhibition 2018, Ireland’s premier trade event for the food and drink processing, packaging, ingredients and logistics industries, is being held at the Citywest Convention Centre on Wednesday, September 5th, 2018. The theme of the 2018 National Food & Drink Business Conference and Exhibition is ‘Collaborating for an Innovative [...]...
  • 2 Sisters Outlines Transformation Agenda Ronald Kers, the new chief executive of 2 Sisters Food Group, has spelled out his vision for the future of the company. His first 100 days have been taken up with an assessment of the opportunities for the group and creating the new initiatives he plans to put in place. Ronald Kers comments: “2 Sisters can [...]...
  • General Mills Announces Significant Growth Across its UK Snacking Division General Mills is launching new lines across both its Fibre One and Nature Valley portfolios, as it reveals its snacking division has grown +35.4% and household penetration has grown +12.1 percentage points to 25.3%[1] – equating to the size of London[2]. Cake Bars will be added to Fibre One’s guilt-free snacking range in two flavours: Triple Choc [...]...

UK Sugar Tax Adds £5 Million in Soft Drink Retail Sales

UK Sugar Tax Adds £5 Million in Soft Drink Retail Sales
May 29
10:28 2018

Since the UK soft drinks sugar levy came into force on 6th April 2018, market data from IRI, the provider of big data and predictive analytics for FMCG manufacturers and retailers, indicates that in the two weeks following the introduction of the sugar levy, sales of soft drinks rose in value by £5 million to £167 million per week. As prices of many soft drinks on supermarket shelves rose, people shifted their soft drinks purchases to low sugar alternatives and water meaning that an additional 7%, 11 million litres, of lower sugar soft drinks are being consumed every week.

The Government’s goal was to raise an additional £500 million to invest in funding sports equipment and breakfast clubs for children as a quarter of children are now overweight when they start school. The sugar levy comprises two tax bands; 18 pence per litre (5g of sugar per 100 ml) and 24 pence per litre (8g of sugar per 100 ml).

All major multiples have reflected the new higher prices on shelf as major brands pass on the cost of additional taxes to the consumer. Big brands have deployed a range of strategies to mitigate the levy’s effect and harness consumer appetite. Pepsi and Coca-Cola are the only brands to experience a small impact in volume, down -2% and -1% respectively, whilst all other major brands have seen a positive impact in volume sales.

In value terms, larger brands have fared well across the implementation with Coca-Cola being the standout winner (up £2 million a week comparing the pre and post trend). Coca-Cola’s strategy to maintain price parity across full and low/no sugar alternatives but adjust packet sizes to fit the new rules of the game is distinctive. Additionally, new flavour options are well baited hooks to catch the eye of shoppers, as most ‘full sugar’ drinkers are questioning their next purchase due to the sizeable price hikes.

Stephen Jacobs, Insight Director at IRI, says: “The introduction of the UK sugar levy has had a clear impact on the soft drinks category without effecting volume sales, so far. Good weather always leads to a rise in soft drinks sales but there is no doubt that higher prices have driven consumers to make healthier choices with one of every 13 soft drinks sold a low sugar alternative.  We look forward to seeing how the big brands can capitalise on Britain’s changing habits and harness this growth successfully.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 12, 2018Packaging Innovations & Luxury Packaging London 2018
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements