Why extending the soft drinks industry levy is the wrong way to go
New polling by Suntory Beverage and Food GB&I shows that MPs favour a more holistic approach to drive healthier lifestyles.
Everyone wants to live in a healthier, happier society. At Suntory Beverage and Food GB&I (SBF GB&I) – the proud makers of Lucozade and Ribena – we believe businesses should always be part of the solution.
For over a decade, we’ve been reducing sugar across our drinks range in line with consumer tastes and the government’s ambitions. But improving public health is complex. It requires evidence-based, holistic policymaking and – importantly – a regulatory environment that rewards responsible action rather than punishing it.
That’s why the government’s recent proposal to extend the Soft Drinks Industry Levy (SDIL) needs an urgent rethink.
Reformulation takes leadership and investment
Reformulating popular drinks to reduce sugar without compromising taste and functionality takes years of research, innovation, and thoughtful engagement with consumers. This is the journey we’ve been on for years.
Before the UK government introduced the SDIL, we had already begun reducing sugar in our iconic drinks while maintaining the taste and functionality that consumers love.
Today, none of our drinks are high in fat, salt or sugar (HFSS) thanks to over £4m worth of investment in reformulation and £13m in upgrading our factory in the Forest of Dean to support low- and no-sugar drinks production. This is long-term, strategic innovation for health.
Looking at the evidence
This progress shows why we’re concerned about the government’s recent proposal to reduce the SDIL lower sugar threshold from five grams per 100ml to four grams. It moves the goalposts and penalises the producers that have already made a significant contribution to sugar reduction.
The government’s own evidence shows this won’t deliver significant improvements to public health, nor will it generate much new revenue for the Treasury.
Treasury calculations point out that calorie reductions would be just 2.1 kcal per day for 11–18-year-olds and 1.2 kcal per day for adults. Over a year, this equates to fewer calories than two slices of buttered toast per person.
The estimated savings for NHS and social care are equally modest at £200 million over 25 years. Taken annually, the £8 million of upside equates to around 0.004% of NHS England’s yearly budget,1 showing we simply must think wider.
We need a holistic approach to public health
There is plenty of evidence showing that we must take a whole systems approach to tackling obesity.2 Government must look beyond unnecessary changes to the SDIL and seek to promote active lifestyles and balanced diets while supporting informed consumer choices.
It’s reassuring that MPs across the House agree. Our polling shows that nearly three-quarters of MPs believe promoting sport and physical activity is highly effective in encouraging healthier lifestyles, and over half support enhanced educational initiatives to improve health.
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Compare this with just 19 per cent who believe additional taxation on food and beverages will make the most difference, and we can see the need for a more balanced approach on this crucial issue.
Industry wants to play its part
We know that our industry has a vital role in offering a range of choices, including low- and no-sugar drinks. In fact, seven in 10 drinks sold are now zero-sugar.3
Government must celebrate rather than punish this success story and pursue a more holistic approach to tackling the challenge of obesity.
With soft drinks now representing less than 6.5 per cent of total sugar consumption in the UK,4 the government’s proposed change risks disrupting the industry for little to no health gain. With rising costs and economic pressures, maintaining a stable policy environment is crucial for continued investment in manufacturing capability and lower sugar innovation.
There is a better way forward
We share the view held by 73 per cent of MPs that physical activity is key to driving positive health outcomes. This is why we have proudly sponsored the London Marathon for 24 years and partner with many of the nation’s favourite sports teams, demonstrating the importance of sport and physical activity across the UK.
Successful and lasting public health campaigns like "Change4Life" (now “Better Health”) or “5-a-day” demonstrate the simple and practical steps we can each take to make a difference to our health. The government should put the consumer first and help reinforce the importance of both physical activity and balanced diets.
Our ask of government is simple: work with industry, not against it. Let’s support innovation, empower consumer choice, and help people live healthier and more active lives.
- HM Treasury, Autumn Budget 2024, October 2024.
- Public Health England, 'Whole systems approach to obesity: A guide to support local approaches to promoting a healthy weight', July 2019.
- British Soft Drinks Association, 2024 Annual Report.
- Kantar Worldpanel, ‘Sugar volume % contribution of select food and drink categories to Take Home Sugar | 52we time periods 2015 – 2024’
YouGov completed online interviews with a representative sample of 103 MPs. The survey was completed between 6th April – 13th May. All results are based on a sample and are therefore subject to statistical errors normally associated with sample-based information. Any percentages calculated on bases fewer than 30 unweighted respondents must not be reported as they do not represent a wide enough cross-section of the target population to be considered statistically reliable; however, due to the recent elections we now see a base of size fewer than 30 for the main opposition party. For the purpose of consistency, we have reported the two major parties (Labour and Conservative) throughout the polling. Results for MPs are weighted by party, gender, electoral cohort, and geography to give a sample that is representative of the House of Commons. Based on a 95% confidence level results are correct to +/- 9%.
