UK sugar tax adds 5 million pounds to soft drinks retail sales a week – study | Progresiv
Since the UK’s sugar tax was introduced on 6 April, sales of soft drinks in the country rose in value by 5 million pounds to 167 million pounds per week, according to market data from IRI. 
As prices of many soft drinks on supermarket shelves rose, consumers are said to have shifted their soft drinks purchases to low-sugar alternatives and water, meaning that an additional 7% of lower-sugar soft drinks are being consumed in the UK every week.
In order to meet the taxable threshold, beverages need to contain at least 5g of added sugars per 100ml of ready-to-drink or diluted product. This equates to additional 0.18 pounds per litre for drinks with 5g or more of sugar per 100ml, while drinks with more than 8g per 100ml will face a tax rate of 0.24 pounds per litre.
The sugar tax was announced in 2016 as a means of raising 520 million pounds to invest in funding sports equipment and breakfast clubs for children, an amount which was later revised by the Office for Budget Responsibility to 275 million pounds.
IRI said that since the levy was introduced, Pepsi and Coca-Cola have seen their volumes decline by 2% and 1% respectively, while “all other major brands have seen a positive impact in volume sales”.
Stephen Jacobs, Insight Director at IRI said: “The introduction of the UK sugar levy has had a clear impact on the soft drinks category without effecting volume sales, so far.
Last week, England’s public health body said that a review will take place in 2020 on whether to add milk-based drinks to the UK’s sugar tax. Currently dairy drinks with at least 75% milk or any milk substitute with at least 120mg of calcium per 100ml are excluded from the levy, partly due to the nutritional value of the beverages. (www.foodbev.com)
