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European soft drinks sector commits to reduce added sugars by a further 10%

The soft drinks sector is an early mover in added sugars reduction with its journey beginning in the 1970’s when the first no sugar and calorie soft drinks were introduced. In soft drinks, reduction in added sugars leads directly to reduced calories. The industry reduced sugar in still and carbonated soft drinks by 12% from 2000-2015, so the new commitment triples this pace by adding another -10% over the next five years.

By joining industry forces at European level, the commitment has the merit of putting in place a Europe wide approach and impacting over 500 million consumers. The committed 10% is an aggregate and takes into account existing and new local industry pledges on sugar reduction, reflecting specific national diets and consumer preferences in the EU. The initiative addresses consumer preferences regarding sugar and calorie intake. It is also a response to the EU’s call for reformulation and sugar reduction across the food industry. The commitment supports the EU Roadmap for Action on Food Product Improvement and the Annex on Voluntary Reduction of Added Sugars with its 10% sugar reduction target agreed between Member States and the European Commission.

The industry will achieve its target through increasing its efforts on reformulation and new product innovation – including by using low-and no-calorie sweeteners – and increasing the availability of smaller pack sizes to allow portion control and moderation. In addition, soft drinks producers will invest in the promotion of beverages with reduced or no sugar to actively encourage consumer choice towards low and no calorie products. Independent third party research will monitor progress, which will be shared with stakeholders.

Announcing the move today Stanislas de Gramont, president of UNESDA Soft Drinks Europe and CEO of Suntory Beverage and Food Europe said, “We welcome the EU’s policy approach to reformulation and sugar reduction which is based on partnership and allows us to deliver speed and scale. This 10% sugar reduction commitment represents a tripling of the pace of our efforts to date. We will need to employ a wide array of tools in order to achieve our ambitious target and we hope other food categories will follow suit in order to generate critical mass.”

Commenting on the initiative Dan Sayre and Nikos Koumettis, Presidents of The Coca-Cola Company’s Business Units in Europe said, “As a company, we have always grown by listening and responding to our consumers, stakeholders and society at large. We agree that too much sugar isn’t good for anyone and want to enable consumers to better control their intake of added sugar. We believe that this and the other actions we are taking will help more people make the right decisions for them and their families.”

Richard Evans, PepsiCo Europe and Sub Saharan Africa President Category Teams, Franchise and Africa added, “Companies like PepsiCo have a tremendous opportunity – as well as a responsibility – to not only make a profit, but to do so in a way that makes a difference in the world. We were first movers in reformulating products for lower calories but we recognise that more must be done to help people manage their calorie intake. Working together with our industry peers, this accelerated programme to reduce sugar is one of the ways we are bringing our Performance with Purpose vision alive. We aim to deliver strong financial performance sustainably over time in a way that is responsive to the needs of society.”

The soft drinks industry is the first sector to come forward with a commitment in response to the EU’s general 10% added sugar reduction target. The industry is already actively working with local governments and stakeholders across Europe in driving sugar reduction and looks forward to continuing these efforts tailored to local situations and needs.

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).