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Sugar tax ‒ risk or opportunity for uk food and drink

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The sugar tax poses huge risks for the food and drink industry in the UK. But could a sensible forward-thinking strategy turn it into an opportunity?

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Sugar tax ‒ risk or opportunity for uk food and drink

  1. 1. The proposed sugar tax has inflamed passions across the food and drink industry. Some industry authorities have used the tax to attack celebrity chefs. In 2015, the UK sugar tax seemed to be a huge looming risk for the industry, but since then have food and drink producers managed to turn it into an opportunity? Sugar Tax Risk or Opportunity for UK Food and Drink? etq.com THE RISKS 20%of 5-year-olds in the UK are overweight or obese Nestlé used it as the impetus to create a whole new type of chocolate with 40% less sugar. WHY HAVE REACTIONS BEEN SO DIFFERENT? It all comes down to whether businesses treat the tax as a risk or as an opportunity. 46% of consumers are monitoring or reducing sugar consumption A French sugar tax has decreased cola consumption by 3% annually As of 2018, the UK will levy 18p and 24p per liter on sugary drinks THE CLEAR RISK IS THAT A SUGAR TAX COULD HARM AN INDUSTRY ALREADY SUFFERING THE EFFECTS OF AN “OBESITY CRISIS.” UK manufacturers are committing to a 250 kcal cap on servings of sweets Consumers want healthy options and spend more to get them Nestlé has managed to reduce sugar content in chocolate by 40% Over 57% of the soft drinks market is now low sugar On the other hand, the industry is moving to embrace a low-sugar future, which is engaging previously worried customers. Manufacturers aren’t abandoning sugar on a whim. Or because of Jamie Oliver. THE OPPORTUNITY IT’S DOWN TO RISK MANAGEMENT. 1 Manufacturers identified a risk – the sugar tax 3 They prioritized sugar reduction in their planning 4 Finally, manufacturers developed and released solutions 5 The risk (lower profits) is now an opportunity (new products) 2 They modeled the effects By adopting risk-based thinking, identifying problems and developing solutions in advance, you’ll keep your company right in the sweet spot where risks become opportunities. Learn how to turn your risks into an opportunity for success, download: The Risk Management Handbook: Supporting a Quality Culture Across Your Business etq.com The Risk Management Handbook — Supporting a Quality Culture Across Your Business Risk-based thinking is fundamental to quality culture, and involves extending risk management across all your operations. In this guide, we show you how. Takeaways In 2015, the UK food and drink industry reacted angrily to the risks posed by the sugar tax. But the conversation has moved on. The market has already begun to move away from sugary foods, posing a risk to the industry even without the tax. However, consumers are happy to pay a premium for low sugar foods, providing an opportunity - one that was recognized. Forward-thinking companies used risk management processes to give themselves enough time to create new products with less sugar that wouldn’t be hit by the tax. By identifying the risk and taking action, the industry has turned the sugar tax into a huge opportunity for new products and further growth. Download the eGuide now!

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