Soft Drinks Tax
What is the Soft Drinks Tax
This came into effect in April 2018, and is applied to soft drinks containing sugar above a certain threshold. 18p per litre is added to soft drinks containing 4-8g of added sugar per 100ml, and 24p per litre to soft drinks containing 8g+ of added sugar per 100ml. The Soft Drinks Tax does not apply to pure fruit juice (like Appletiser), no added sugar drinks (like Coca-Cola Zero Sugar), or drinks with a minimum of 75% milk content.
What do you need to do?
To find out more and download our guide to understanding the Soft Drinks Tax, click the below, or alternatively read our FAQs.Read more
* Doesn’t include pure fruit juice, no added sugar drinks, drinks with 75% milk content.
Does the Soft Drinks Industry Tax include imported soft drinks?
Yes. The Soft Drinks Industry Tax applies to the production and importation of soft drinks containing more than 5g of added sugar. It is, therefore, illegal to sell imported soft drinks with added sugar without paying tax to HMRC.
How should I price soft drinks in my outlet?
Health experts and policymakers have made it clear that they expect the soft drinks tax to be passed on to consumers, creating a differential in the market between regular and no-sugar products. However, it is up to retailers and licensees to set retail prices in their outlets.
What has CCEP done to mitigate the Soft Drinks Industry Tax?
We have remained focused on our sugar reduction strategy to help consumers make healthier choices. We have changed recipes, introduced innovative new products, built the distribution of our smaller packs and encouraged consumers to choose our lower and no-sugar drinks. Between 2012 and 2018, we invested £30m in reformulation and have introduced 29 reformulated or new low or zero sugar soft drinks since 2005 that all taste just as good as or better than the original recipes. As a result, 95% of our products are Soft Drinks Industry Tax exempt. These much-loved brands include Diet Coke, Coca-Cola Zero Sugar, Fanta, Schweppes Classic, Sprite, Monster Ultra, and Glaceau SmartWater.
What brands, products or variants are affected?
Coca-Cola Classic, Monster Green (and flavoured variants) and Schweppes 1783 are subject to the Soft Drinks Industry Tax.
Why have you chosen not to reformulate Coca-Cola Classic?
Millions of people around the world have loved Coca-Cola for more than 130 years and do not want us to tinker with the recipe. For those who love the taste of Coca-Cola but want a no-sugar option, we have Coca-Cola Zero Sugar, which we launched in 2016 to taste even more like Coca-Cola Classic without the sugar.
How can I work with the Soft Drinks Industry Tax?
Health-conscious consumers are demanding more low and zero sugar options to choose from. With that in mind, we recommend that retailers and licensees focus on getting their range right by offering a larger number of low and zero sugar soft drinks.
Why is your Coca-Cola Zero Sugar 330ml PMP lower than Diet Coke?
We are investing £25m in supporting our zero sugar colas. As part of this and to drive the trial of Coca-Cola Zero Sugar we have a special 55p PMP. It’s also worth noting that a PMP is a maximum that a product can sell for. A retailer is free to sell for lower or stock a plain pack and price at their own discretion.
What should I say to my customers?
We would advise that retailers/licensees are honest and factual, linking changes to the soft drinks tax. They should explain that the soft drinks tax has increased the price of soft drinks containing more than 5gm of sugar per 100ml and that some manufacturers have also changed pack sizes. They should also highlight that soft drinks containing less than 5gm of sugar are not affected by the tax. However, this explanation and pricing are at the discretion of the retailer.
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