Food & Beverages

Reformulation of the food industry by taxes


The revenue of the UK government from taxes on soft drinks has been significantly lower than expected. With the claimed success of the tax in the reformulation of the companies, it is increasing industry concerns about the tax being extended to food products as well.

Head of obesity policy at the Department of Health, Richard Sangster said at an industry event discussing the tax that the revenue generated from the tax levy- 153.8 million pounds, was much lower than expected. This, however, is described as good news by Sangster as the lower revenues generated implies the reformulation of the companies on which they were levied.

Chief executive of Living Loud, a campaign group Dan Parker corroborated this statement saying that the food industry required talent and skill and would innovate if provided with the right motivation as was evident from the company reformulations.

Public Health England (PHE) reported a reduction of 2% in the sugar levels in May against a target 5%. Sangster was positive about this and described this achievement as encouraging. He believed the next report due to come out in March would show greater progress. Parker was also of this view and anticipated what the next report showed however the urged the government to take harsh measures against defaulters.

Food reformulation is said to be an integral part of UK's strategy to control child obesity. The second phase of the program focuses on the marketing of food products high in salt sugar and fat content. Control on the pricing, in store merchandising and a 9 pm shed on advertising would be in effect by the end of the year.

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