The UK sugar levy on high-sugar drinks has come into effect today.
Brands such as Fanta, Ribena and Lucozade have reduced their sugar content in anticipation of the levy, which is also enacted by a handful of other nations including Mexico, France and Norway.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIrn-Bru, Ribena and Lucozade have cut the amount of sugar from above 10g per 100ml to below 5g per 100ml. Pepsi and Coca-Cola have not changed their recipes, according to the BBC.
The levy is being applied to manufacturers. Whether they pass it on to consumers or not is up to them.
Drinks with 5g of sugar per 100ml will face a lower rate of tax at 18p per litre. Those with more than 8g per 100ml will face a higher rate at 24p per litre. Pure fruit juices will be exempt as they do not carry added sugar, while drinks with a high milk content will also be exempt due to their calcium content.
Originally, the Treasury forecast it would raise more than £500m a year, but that has now been reduced to £240m because of the sugar reduction by manufacturers. In England that income is being invested in schools sports and breakfast clubs, according to the BBC.
