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Soft Drinks Levy “Sugar Tax”
Soft Drinks Levy“Sugar Tax”
What is the soft drinks levy?
Is this the same as the “sugar tax”?
The Soft Drinks Industry Levy (SDIL) was nicknamed the “sugar tax” by the media and online when it was announced at the 2016 Budget.
Is it a tax on all sugar?
No. The levy directly targets the producers and importers of sugary
soft drinks to encourage them to remove added sugar, promote diet drinks and reduce portion sizes for
high sugar drinks.
When does it
come into force? 6th
April 2018Friday
In order to encourage companies to resize and/or reformulate their product mix to reduce the added sugar in their products,
the Government has introduced a new levy on
soft drinks.
Sugar-sweetened soft drinks have been
identified by public health experts as a major contributor to
sugar consumption and an important factor in
obesity.
The Soft Drinks Industry Levy will be charged
to producers and importers of soft drinks
with added sugar.
How muchwill be taxed?
18pPer Litre
Total added sugar per
100ml: 5g+
Total added sugar per
100ml: 8g+
24pPer Litre
The levy will make soft drinks companies pay a charge for drinks with a total added sugar content of 5g or more per 100ml.
That is about 5% sugar content.
There is a higher charge for drinks that contain 8g or more per 100ml, or about 8%
sugar content.
5g+ per 100mlSize Tax Per Pack Plus VAT
250ml
330ml
375ml
500ml
1.25Ltr
1.5Ltr
1.75Ltr
2Ltr
4.5p
5.9p
6.8p
9p
22.5p
27p
31.5p
36p
5.4p
7.1p
8.1p
10.8p
27p
32.4p
37.8p
43.2p
8g+ per 100mlSize Tax Per Pack Plus VAT
250ml
330ml
375ml
500ml
1.25Ltr
1.5Ltr
1.75Ltr
2Ltr
7.2p
9.5p
10.8p
14.4p
36p
43.2p
50.4p
57.6p
6p
7.9p
9p
12p
30p
36p
42p
48p
How will this affect
me?
It is suggested that the products affected by the levy be premium
priced above their low/no sugar counterparts. This is to encourage a lower sugar
consumption by either reducing portion sizes or choosing a
healthier alternative.
Manufacturers do nothave to pass on the levy to wholesalers, however it is
assumed that most will. Likewise, wholesalers and retailers do
not have to pass on the levy to consumers by increasing their
own sell prices.
Liable DrinksA drink is liable if it meets all of these
conditions
it has a content of 1.2% alcohol
by volume or less
it’s ready to drink, or needs to be
diluted with water, mixed with crushed
ice or carbon dioxide
it’s packaged ready for sale
it contains at least 5g of sugar per 100ml in its ready to drink or
diluted formit has had sugar
added during production,
including sucrose, glucose and honey
it containsat least
75% milk
it’s a milksubsistitute which contains at least 120 milligrams of calcium per 100ml
e.g. soya oralmond milk
it’s an infantformula, follow-on formula, baby food,
formulated food intended as a total diet
replacement or dietry food used for special medical
purposes
it’s an alcohol replacement drinke.g. de-alcoholised
beer or wine
Exempt DrinksA drink is exempt if it meets one of these conditions
Pure fruit juices won’t be taxedas they don’t contain added sugar
Drinks with a high milk content won’t be taxed as they contain calcium and other nutrients that are vital for a healthy diet
Over 90% of our company owned productswill be lower or no sugar by April 2018
All product changes are in line with changing consumer preferencesand have been extensively taste tested with shoppers.
ALL 14 FLAVOURS ARE NOWLOW OR ZERO SUGAR
NEW LOWER SUGAR PRODUCTSON ALL 9 FLAVOURS
NEW LOWER SUGARPRODUCTS ON ALL
6 FLAVOURS
ALL 3 FLAVOURSZERO SUGAR
NEW LOWER SUGAR PRODUCTSON ALL 5 FLAVOURS
RESPONDING TO SHOPPER NEEDS A RANGE TO SUIT ALL TASTES
ALLZ
A taste ofthe Caribbean
NEW LOWERSUGAR PRODUCT
NEW LOWERSUGAR PRODUCT
NEW LOWERSUGAR PRODUCT
NEW LOWERSUGAR PRODUCT
ZEROSUGAR
ZEROSUGAR
ZEROSUGAR
LOWSUGAR
LOWSUGAR
ZEROSUGAR
NEW LOWERSUGAR PRODUCT
NO ADDEDSUGAR
FULLSUGAR
NEW LOWERSUGAR PRODUCT
NEW LOWERSUGAR PRODUCT
NEW LOWERSUGAR PRODUCT NEW LOWER
SUGAR PRODUCT
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVYFREE
LEVIABLE
SUGAR LEVYKNow the
facts
What’s happeningIn the April 2016 Budget, the government proposed a new levy on soft drinks that contain added sugar. This levy applies to the production and importation of soft drinks containing added sugar. One of the Levy’s objectives is to encourage consumers to drink a broader range of low sugar choices & differential pricing.
HOW WILL ITimpact RETAILERS?The Levy Facts*
LEVY IMPACT BY SERVEWhat Retailers choose to do with price is at their discretion. The price tags below demonstrate the impact of the Levy on selected soft drinks if Retailers choose to maintain their cash margin and pass on the Levy in full with VAT applied.
£0.05Mid levy 18ppl
£0.07High levy 24ppl
£0.07Mid levy 18ppl
£0.10High levy 24ppl
£0.11Mid levy 18ppl
£0.14High levy 24ppl
£0.38Mid levy 18ppl
£0.50High levy 24ppl
£0.43Mid levy 18ppl
£0.58High levy 24ppl
£0.71Mid levy 18ppl
£0.95High levy 24ppl
200ml PET330ml
Can500ml(PET)
1.75l(PET)
2l(PET)
10 x330mlMultipack
The levy will be applied to drinks with added sugar. Dairy and Pure Juice drinks will be exempt.
Soft Drinks Industry Levy
EFFECTIVE FROM 6TH APRIL 2018
what can RETAILERS do?PASS ON THE LEVYWhat Retailers choose to do with price is at their discretion. One of the Levy’s objectives is to encourage consumers to consume a broader range of low and no sugar soft drinks. It is our recommendation that where the Levy is applied to a product, it should be passed on to the price the consumer pays but that’s up to you.
REVIEW YOUR
RANGEWe focus on producing great tasting low and no added sugar products. Retailers should review their soft drinks range to make sure you’re stocking a range of great tasting no and low sugar products. See across for must stocks.
OFFER CHOICE
Consumers will still demand added sugar soft drinks as a treat within their balanced diet and lifestyle. Continue to stock added sugar products but ensure your range reflects the shift in consumer demand.
Pepsi MAX 2L, 7up Free 500ml PET, Tango 500ml PET, Pepsi MAX Cherry 500ml PET, Pepsi MAX 300ml can, Robinsons Refresh’D Apple & Raspberry 500ml PET, Fruit Shoot 275ml Apple & Blackcurrant, Pepsi MAX 6pk, J2O Orange & Passion Fruit 275ml 4pk.
MUSTSTOCK!
GENUINE GB PRODUCT
∆ Manufactured in GB, Sugar Levy Valid from 06/04/2018.
∆
BRV403493 - SDIL FP V02.indd 1 26/02/2018 11:12
Our proven approach to reducing sugar OUR FOUR KEY STRATEGIES TO REDUCE SUGAR CONSUMPTION
NEW LOW & NO SUGAR PRODUCTS
NEW LOW & NO SUGAR RECIPES
NEW SMALLER PACKS
MORE MARKETING FOR NO SUGAR OPTIONS
of our brands will be exempt from the tax
95% By 2018… Great Britain is expecting to be the first country in the world where more than 50% of the Coca-Cola sold will be no or lower calorie
By 2018… By 2020… We will reduce sugar across our portfolio by 20%
Our reformulation plans to ensure exemption from the soft drinks tax
MANY CCEP BRANDS ARE ALREADY EXEMPT FROM THE TAX
WE WILL CONTINUE TO REFORMULATE SO THAT MOST OF OUR BRANDS WILL BE EXEMPT FROM THE TAX BY APRIL 2018
Coca-Cola is the most popular and biggest selling soft drink in history, as well as one of the most recognisable brands1 in the world1. We will not reformulate the secret formula of Coca-Cola which represents over 125 years of history and is the great tasting drink that our consumers know and love. Source: 1Coca-Cola Company.com, Our Billion-Dollar Brands, Feb 19, 2016.
Zero Sugar
No added sugar Pure Juice
Fanta Orange Bag in Box (BIB)
Sprite
Sprite BIB
Dr Pepper
Fanta Icy Lemon
Fanta Fruit Twist
Schweppes Tonic
Capri-Sun
Schweppes Canada Dry Ginger Ale
Current sugar content (g/100ml)
7.2
7.2
8.3
6.4
5.1
≥8
9.1
6.6
6.6
Reformulation timing
Q4 2017
Q4 2017
Q4 2017
Q4 2017
Q1 2018
Q1 2018
Q1 2018
Q1 2018
Q1 2018
Soft drinks tax exempt(<5g/100ml)
Less than 5g/100ml
4.1g/100ml 4.6 - 4.9g /100ml
4.8g/100ml 4.6g/100ml 4.2g/100ml 3.9 - 4.1g /100ml
10.5g/100ml 0.8g/100ml
*sugar levy’ refers to the Soft Drinks Industry Levy. From April 2018, all of our Lucozade Energy, Orangina, Ribena and Lucozade Sport drinks will contain less than 5g of sugar per 100ml, meaning that they fall below the threshold of the Soft Drinks Industry Levy.
Lucozade Zero - zero sugar, awesome taste. Light: 80% fewer calories than regular soft drinks. LUCOZADE, LUCOZADE ENERGY, LUCOZADE ZERO, LUCOZADE SPORT and the Arc Device are registered trademarks of Lucozade Ribena Suntory Ltd. Ribena is a regstered trade mark. Orangina is registered trade mark of Schweppes International Ltd.
Lucozade Sport provides carbohydrates and electrolytes to enhance hydration and help maintain performance during prolonged endurance exercise.
Lucozade Ribena Suntory’s core drinks are
‘sugar levy’exempt *
Record £50m investment in brand advertising to drive sales
Award-winning low-sugar NPD including Lucozade Zero and Ribena Light
STOCK UP NOW
Letʼs talk sugarWhat is the Soft Drinks Industry Levy or “Sugar Tax”The Soft Drinks Industry Levy (SDIL) is a new government levy intended to encourage producers and importers of soft drinks to provide healthier choices for consumers.
How could this impact the soft drinks categoryFor those brands above the levy (+5g/100ml in ready–to–drink or diluted squash form) this could lead to NPD, re-formulation, pricing and / or pack size changes.
When does it kick in? 6th April 2018
What is Lucozade Ribena Suntory doing? We announced back in 2016 that our core portfolio will be entirely “sugar tax” free. Weʼve been busy reformulating so that for you, our retailers, itʼs business as usual with Lucozade Energy, Lucozade Sport, Ribena and Orangina all levy-free by 6th April.
Source: HIM CTP 2017, IRI Data Symbols&Indies 52wks to 20/10/17
•Allocate space in line with sales contribution •Merchandise best sellers at eye level, ideally within the central diamond of the layout•Brand block skuʼs together with minimum of 2 facings per sku
PREP YOUR SOFT DRINKS CHILLER TODAY!
•Each shopper is important - spending up to £232 per year on soft drinks[1]•Keep your shelves fully stocked to encourage impulse purchases & increase category turnover
SPORT
FLAVOURED CARBS COLA STIMULATION & ENERGY
WATER FRESHJUICE DRINKS
Layout
Range
Stockley
Nestle Waters is delighted to confirm that from March 2018 San Pellegrino Fruit Beverages will be made with a lower sugar recipe*, will be exempt from the sugar levy - but will still contain 100% Natural ingredients!
Still No Preservatives!Still made with delicious sun ripened Italian citrus fruit!Still the great taste that our customers love!
* All flavours except Limone e Mente and Chinotto will be reformulated for March release - the remaining flavours will follow later in the year. No tax impact on these flavours will be passed to our customers
WINGSWITHOUT SUGAR.
WINGS WITH
SUGAR.
RED BULL SUGARFREE RED BULL ENERGY
No.1 Energy Drink and No.1 Low Cal Energy Drink. Stock side-by-side in all 3 sizes to offer your shoppers the choice they demand. Red Bull Gives You Wings.
250MLPMC £1.25
355MLPMC £1.59
473MLPMC £1.85
250MLPMC £1.29
355MLPMC £1.59
473MLPMC £1.99
SOFT LEVY FREE
happiness
TASTE
hydration
BETTER DRINKINGCLEVER THINKING
Express Park, Bridgwater, Somerset TA6 4RN • Tel: 01278 441600email: [email protected] • refresco.com
DRIN
KS
At Refresco we’re INNOVATING to bring out the best in all our drinks, continually striving to give theconsumer the liquid INSPIRATION they want. FromApril 2018, all our brands will be reformulatedto be EXEMPT from the soft drinks levy.
Laurel House, Woodlands Park, Ashton Road, Newton-le-Willows, Merseyside, WA12 0HH.
www.vimto.uk0800 066 2133
www.feelgoodrinks.co.ukwww.vimto.co.uk
If you’d like to find out more please get in touch.Visit our Out of Home website at
Our brand websites:
