FDBusiness.com

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

 Breaking News
  • Record Year For Scotch Whisky Exports Official figures from HM Revenue and Customs (HMRC) have revealed a strong year for Scotch whisky exports in 2018, with global growth by both value and volume. In 2018, the export value of Scotch whisky grew 7.8% by value, to a record £4.70 billion. The number of 70cl bottles exported also reached record levels growing to [...]...
  • Kerrygold Unveils Major New Global Campaign Kerrygold, Ireland’s iconic dairy brand and one of the country’s most successful food exports globally, is placing Irish farming families at the fore of a major new global campaign that will reach over 36 million people worldwide and aims to take the brand to new heights. The digital campaign entitled ‘A True Taste of Kerrygold’ puts Ireland’s grass-fed [...]...
  • Hundreds of New Food and Drink Products to Launch at IFE 2019 Many new and exciting products are set to launch during the 21st International Food & Drink Event [IFE] 2019, taking place at ExCeL London on 17-20 March. From next generation water to vegan friendly snacks and the latest product launches featuring global influences, the biennial event is a must-attend for buyers and suppliers looking to explore a taste of [...]...
  • Diageo Submits Plans For Flagship Johnnie Walker Visitor Attraction in Edinburgh Diageo has announced that plans have been formally submitted for the flagship Johnnie Walker visitor centre in Edinburgh. The Edinburgh attraction is intended to be the focal point of Diageo’s £150 million investment in Scotch whisky tourism. The planning application, jointly submitted by Diageo and the building owner Parabola, sets out proposals for a stunning seven [...]...
  • Carlsberg UK Unveils New Danish Pilsner Carlsberg Group has unveiled a new Carlsberg Danish Pilsner as part of a bold strategy to revitalise its flagship beer in the UK. New Carlsberg Danish Pilsner will be available in trade from 1 March, supported by a multi-million pound investment and new visual identity which aims to increase brand quality perceptions. The trade launch [...]...

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

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements