12 JAN/FEB 2018 ADVICE FROM THE EXPERTS What Everything you need to know about the
Soft Drinks Industry Levy By a Treasury spokesperson - HM Treasury is the government’s economic and finance ministry,
maintaining control over public spending, setting the direction of the UK’s economic
policy and working to achieve strong and sustainable economic growth.
is the Soft
Drinks Industry Levy?
The Soft Drinks Industry Levy (SDIL) was
passed into law ahead of the 2017 General
Election, as part of the Finance Act.
It comes into force in April 2018.
It is aimed at the producers and importers
of added sugar soft drinks, and will only
exclude the smallest producers. UK-based
importers of big brand drinks made abroad
will still need to pay the levy on them.
Companies will pay a charge based on
volumes of pre-packaged drinks with
added sugar and total sugar content of
5g or more per 100ml. The levy charge
is 18p per litre for drinks in the main band,
with a higher charge of 24p per litre for
drinks that contain 8 grams of sugar or
more per 100ml.
Dilutable cordials, squashes and syrups
will be taxed according to their sugar
content and volumes after dilution, so
that a glass of cordial is taxed as it is
intended to be consumed.
The levy will not apply to pure fruit
juices, or any other drink with no
added sugar, and milk-based drinks
will be excluded as a source of calcium
and other important nutrients.
The levy will not be charged on alcohol
substitute drinks like low strength beers
and wines, which are intended to help
adults reduce their alcohol consumption.
The levy is expected to raise around
£385million a year, but soft drinks
companies can pay less tax if they
change their approach on sugary
drinks - they don’t have to shift the
tax onto consumers.
in soft drinks?
Children in the UK are
consuming too much sugar.
On average, they consume three
times the recommended level.
Sugar-sweetened soft drinks are
one of the biggest sources of
dietary sugar for children and
teenagers and a source of
A single 330ml can of cola
can contain nine teaspoons
of sugar, which is more than
a child’s daily recommended intake
of added sugar, often without any
other intrinsic nutritional value.
How much is the levy?The amount paid depends on the total
sugar content of the drink.
has 5g of
litre if the
18 p 24 p
in a single 330ml
can of cola, which
is more than a child’s
will not apply
to pure fruit juices,
or any other drink
with no added sugar.
will be excluded as
a source of calcium
and other important
Levy will be
Steps t Soft Drinks Levy o creating a levy ready range
Impact on Foodservice:
The impending soft drinks levy that the
government will introduce from the 6th April
2018 will undoubtedly have an impact within
foodservice, due to increased costs on levy
applicable products. As a proud supporter of
the Country Range Group, Britvic Soft Drinks
will be supporting customers with soft drink
industry levy tools, which will illustrate why the
levy is being implemented and which products
will be impacted. So why does it matter?
For example if an outlet is selling 200 x 500ml
bottles per week of full rate levy products,
the annual soft drinks cost increase would
be £1,248 from April 2018 so we would
recommend that owners consider the
cost impact to their business..
Be range ready
Have a great tasting range of drinks for
your customers to choose from, that
are either below the soft drinks levy
threshold or are exempt from the levy
Pass on the Levy
Follow the spirit of the levy and create
price differentials between high sugar
and low sugar drinks
Educate staff to know
the products and facts
We believe in choice and helping make
informed decisions on healthier choices
Provide your guests with
that create a great experience –
inspirational choices, perfectly served
What are Britvic doing?
We’ve taken bold steps to help consumers make healthier choices.
Through reformulation and innovation, we have removed 19bn calories from
our portfolio since 2012 on an annualised basis. Robinsons has removed 6.9
billion calories since 2015 and by April 2018 72% of our full GB portfolio
(94% of our owned brands) will be below or exempt from the levy.
Stephen Hurley, customer development manager
– wholesale leisure, Britvic Soft Drinks