The Soft Drinks Industry Levy, or Sugar Tax as it is more popularly known, is a surcharge on all drinks containing high levels of sugar. This charge is an attempt by the government to reduce child obesity and type two diabetes throughout the UK.
As major drink manufactures are starting to alter their recipes in order to comply and avoid the increased price of their products, Smylies takes a look at how this could affect the export industry.
The tax will come into effect for consumers in April 2018 and drinks with less than 5g of sugar will be exempt from the taxation.
A large portion of manufacturers have taken it upon themselves to reduce the sugar content in the recipe, ensuring that they comply with the new legislation. For example, Irn Bru has cut sugar content by 50% and Britvic is aiming to reduce the calories of their drinks by 20% before 2020. By replacing sugar with artificial sweeteners, they are removing the need for taxation.
Coca-Cola does not plan to alter their recipe, instead they have concentrated on the promotion and sales of Coca-Cola Zero.
Many countries across the world have passed similar laws over the last five years, including Denmark, Colombia, UAE, France and South Africa.
Smylies exports thousands of products worldwide each year, including a wide range of soft drinks.
We offer help and support when it comes to producing the correct documentation for the destination country, ensuring that you are compliant with the current laws.
If you have any concerns regarding the effect of the sugar tax on the exportation of food and drink with Smylies, please do not hesitate to contact us today. A member of the team will be happy to offer advice and information.