Gavin Partington: Tax would burst bubble for soft drinks firms

THE publication earlier this week of a report from the Academy of Medical Royal Colleges, calling for a tax on sugary drinks, has prompted a 
national discussion on the impact of soft drinks on people’s diet and their health.

The soft drinks industry, which has a proud heritage here in Yorkshire, has always taken its responsibility to its customers and employees very seriously. We recognise that obesity is a major and growing concern, and that people want to make the best choices possible for themselves and their families.

We also recognise that obesity is a complex issue, with no single solution, and this is where we feel that recommendations such as those in favour of a tax fall short: we want to have a sensible debate about all the factors that make people gain weight, and ways we can work together to help people make healthier choices in their diet.

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There are lots of reasons why people might eat and drink as much as they do, and lots more reasons why people don’t take as much as exercise as they might. Any strategy for dealing with obesity needs to take all these factors into account – calories in and calories out – and not focus on just one part of our lifestyles.

We do not believe that a tax on soft drinks will have an impact on rising obesity rates. Soft drinks containing sugar contribute just two per cent of the calories in the average diet. Over the past 10 years, obesity rates have been going up, but the consumption of soft drinks containing added sugar has actually gone down, by nine per cent. Additionally, more than 60 per cent of soft drinks contain no added sugar, up from 30 per cent 20 years ago.

However, even though the consumption of calories from soft drinks has been falling, there is still more that the soft drinks industry can do. That is why a growing number of soft drinks companies have signed up to the Government’s Public Health Responsibility Deal, making firm commitments to help people make healthier choices and enjoy their products as part of a balanced diet. These are robust pledges with ambitious targets that will be measured and reported on.

For example, Coca-Cola has said that it will help consumers reduce their calorie intake through reformulation of its brands, as well as by increasing the promotion of no calorie, zero sugar colas.

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Pepsi advertises only the no sugar and natural variants of Pepsi, while AG Barr is seeking to reduce the calorific content of its existing drinks range where it is possible to do so, without reducing how much people enjoy the drinks. Britvic is leading with no and low sugar variants of products in its advertising, offering a number of its products in smaller pack sizes; while GlaxoSmithKline is reducing the calorie content of Lucozade Energy and ready-to-drink Ribena.

These are significant changes and represent the direction of travel for the soft drinks industry. We welcome the Government’s commitment to allow these kinds of measures to be allowed time to take effect.

We are also concerned about the potential impact such a tax could have on a thriving and important manufacturing industry. Some of Britain’s best-loved soft drinks companies – Princes in Bradford, Coca-Cola in Wakefield, Britvic in Huddersfield and Leeds, AG Barr in Sheffield and Boost Drinks in Leeds – are proud to call Yorkshire home.

We would be concerned about what the impact of new taxes would be to the future growth of this industry. A similar tax in Denmark was scrapped at the end of last year for just these reasons.

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Furthermore, soft drinks are already taxed. Soft drinks carry VAT, so 10p from each 60p can of drink goes to the Government. A further tax on a family’s food and drink shopping bill would put yet more strain onto people already hard-pressed during tough economic times.

We are proud that people enjoy our products, and we are proud to make them. We do not believe that a complex issue such as obesity can be solved by the targeting and demonising of one part of people’s diet.

Everyone – individuals, parents, families and industry – needs to work together to help to solve this problem. For some people that might mean cutting back on what they eat, for others it might mean switching from regular to diet drinks, for most people it might mean taking a bit more exercise. We do not believe that placing a further tax on people’s favourite food and drinks is the right or fair solution.

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