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Time for the EU to accelerate action and deliver for its food and drink industry

 

By Nicholas Hodac, Director General, UNESDA Soft Drinks Europe

One year since the launch of the EU Vision for Agriculture and Food, the European soft drinks sector asks the EU to turn its good intentions into action by removing outdated rules hindering innovation, making laws simpler and clearer and ensuring evidence-based policies that promote fairness across the entire food supply chain.

One year ago, Commissioner Christophe Hansen presented the EU Vision for Agriculture and Food – a bold plan to make the agri-food sector more competitive and innovative.

It is a vision built on strong intentions: simplifying legislation, fostering food innovation and strengthening collaboration across the entire value chain.

As part of this Vision, the European Commission committed to launching the Food Dialogues on reformulation and dietary intake data collection. This is an important platform to bring the whole food and drink industry together and drive progress collectively.

The Commission also confirmed that the voluntary approach under the EU Code of Conduct on Responsible Food Business and Marketing Practices will continue. That is a clear signal of trust and recognition that voluntary industry action delivers results.

Now, intent must translate into action because our businesses need to keep supporting jobs, investing, and innovating. This is critical. The European soft drinks sector is a leading innovator and a key contributor to the European economy. We support over 1.8 million jobs and generate €242bn in revenues across our European supply chain. We are a truly ‘Made in Europe’ sector: over 97% of our beverages are produced in Europe, and more than 85% of our ingredients are sourced from European farmers.

Recently, EU leaders unanimously agreed to boost competitiveness and continue to push ahead with the EU’s ambitious simplification agenda. As António Costa, President of the European Council, stated: ‘in 2026, Europe will deliver. […] We will [deliver] on competitiveness this year.

We are eager to see action. While some progress has already been made with the simplification omnibus packages, the EU must now move faster and put concrete enablers in place without delay.

To support this, our sector has identified a few top priorities to drive faster EU action. We are calling for policies grounded in robust evidence. Legislation must also be thoroughly assessed to ensure it is fit for purpose. And it must promote fairness across the food supply chain, avoiding discrimination against any specific food, drink or ingredient, and recognising the importance of balanced diets and lifestyles.

We are also calling for the removal of outdated rules that lack technical or scientific justification, such as the 30% energy reduction rule restricting the use of low-/no-calorie sweeteners. By law, this rule only allows manufacturers to add a low or no-calorie sweetener to foods and drinks if the energy value has been reduced at least by 30%. This is a major barrier to innovation and to further sugar reduction.

At the same time, we are calling on the EU to make environmental rules simpler, clearer and more coherent, without lowering its green ambition. Too often, legislation is vague. A good example in the EU Packaging and Packaging Waste Regulation (PPWR) is the exemption from the restriction on single-use plastic grouped packaging for packaging ‘necessary to facilitate handling’, a term that is not defined anywhere.

We also need the EU to deliver clear secondary legislation and guidance on time. Setting targets first and only defining how to measure them years later simply does not work, as the experience with the Single-Use Plastics Directive (SUPD) has shown. Businesses are willing to comply, but they need clarity and predictability on how to meet the targets.

Our sector remains committed to delivering progress. We have consistently taken responsibility. The EU asked us to reduce sugar — and we were already doing so for years and long before any soft drink taxes were introduced. We also accelerated reformulation and expanded consumer choice to further support balanced diets.

The EU asked us to become more sustainable — and we stepped up again. We continue to invest heavily in sustainable operations, in protecting water resources and nature and in efficient collection and waste management schemes to advance packaging circularity.

We have engaged, we have taken action, we have delivered, and we have often gone beyond both EU’s targets and our own voluntary commitments. Now it is Europe’s turn to accelerate action and deliver.

We stand ready to keep engaging constructively and to keep doing our part. For a more competitive and innovative soft drinks sector. For a more competitive and innovative Europe.

 

Current water challenges

We cannot deny the current water challenges our world is facing. We are experiencing increased water scarcity, with demands for safe, usable water exceeding supply in many areas, including in Europe. 

  • Freshwater use has been growing by about 1% per year since the 1980s and as water demand is expected to continue increasing at a similar rate until 2050, this will account for an increase of 20 to 30% above the current level of water use1.
  • This increase in water demand is leading to a reduction of renewable water resources of 24% per capita in Europe2
  • Around 30% of the European population lives in areas with permanent water stress and up to 70% live in areas with seasonal water stress during summer3.
  • Europe’s aquatic ecosystems are severely degraded: only 17% of protected river, lake, alluvial, and riparian habitats are in good conservation status and 90% of protected wetland habitats are classified as poor or bad4.
  • Globally, 85% of wetlands have been lost in the last 300 years, with more than 50% lost since 19905. This is particularly critical as wetlands play an important role in filtering water and removing pollutants, as well as providing shelter to wildlife and capturing carbon.

 

This situation entails severe risks for the world’s population. 

  • For the last decade, the World Economic Forum has placed water-related risks among the world’s top five in its annual Global Risks Report. 
  • Water-related disasters have also dominated the list of disasters over the past 50 years and account for 70% of all deaths related to natural disasters6.
  • Nearly 95% of infrastructure loss and damage reported between 2010 to 2019 were due to water-related disasters7
  • More frequent and intensive flooding has cost lives and livelihoods across Europe, while at the same time, more than 50% of the continent has, in recent years, been affected by extreme drought conditions, which also breed a range of negative social, economic and human outcomes8.

A situation driven by a combination of factors

The deterioration of the natural water cycle stems from a confluence of factors: growing urbanisation, growing populations, increased consumption, poor management, pollution, lack of or damaged infrastructure, and climate change.  

Agriculture was responsible for 59% of total freshwater use in Europe in 20179, while industrial and domestic uses are the main drivers of increasing water demand. Indeed, as economies industrialise, populations urbanise and water supply and sanitation systems expand. 

Additionally, rising temperatures and more extreme weather patterns are causing more droughts and flooding. Climate variability is also bringing more uncertainty as to the availability, predictability and geographical distribution of water. Water and climate change are inextricably linked. From unpredictable rainfall patterns to shrinking ice sheets, rising sea levels, floods and droughts – most impacts of climate change come down to water (UN Water).