The European soft drinks industry is committed to playing a meaningful role in the fight against overweight and obesity and is creating a healthier food environment by offering a wide range of products with reduced calories and reduced or no sugar that can support people in managing their calorie and sugar intake. For many years our industry has made far-reaching commitments to reduce the average added sugar content of its drinks and promote moderate consumption. UNESDA was the first, and to date only, sector to respond to the EU’s 2015 call for a 10% reduction in added sugars by 2020.
We are committed to continuing our actions to reformulate existing products, innovate to develop new products with lower sugar profiles, place promotion behind low- and no-calorie options to nudge consumer behaviour, and reduce pack sizes to help portion control.
However, overweight and obesity are complex issues with multi-factorial causes requiring a multi-stakeholder approach with governments, industry, the healthcare community and civil society, among others, working together. Obesity’s complexity does not lend itself to an isolated simplistic solution like a soft drinks tax but requires a pluri-dimensional approach.
It is well-recognised that obesity is largely the result of an imbalance between excess energy consumption and too little energy expenditure over time, and that all calories count . Many public health bodies, including the World Health Organization (WHO), have also long recognised that obesity has been fuelled by a variety of complex environmental, social, economic, behavioural, and/or other factors. Experts including in the WHO, the Organisation for Economic Cooperation and Development (OECD), and the European Commission acknowledge that overweight and obesity are due to:
Because obesity is the result of a multitude of factors, a range of interventions is necessary to encourage and empower individuals to make the required behavioural changes.
In 2017, the McKinsey Global Institute (MGI) mapped out the range of solutions available to society to change its collective behaviour and reduce obesity. MGI assessed the potential impact and cost-effectiveness of 74 interventions. This exercise concluded that taxation is a rather inefficient intervention compared to other measures. The two most efficient interventions in tackling obesity were portion control and reformulation, two interventions our sector has been prioritising for years.
The soft drinks sector achieved a 13.3% reduction in average sugars in soft drinks between 2000 and 2015 and a 14.6% reduction between 2015-2019 in the EU-27 and the UK. Thanks to our latest actions, we reached a 10.8% reduction in average sugars between 2019 and 2023. This means we have achieved already in 2023 our 2019-2025 sugar reduction target of 10% (see here an overview of current national sugar reduction commitments in the soft drinks sector).
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Here’s why our sector questions the effectiveness of taxes on soft drinks in promoting healthier lifestyles:
No evidence that taxation of soft drinks drinks has reduced obesity or non-communicable diseases (NCDs)
Taxation of low- or no-sugar beverages lacks policy coherence and undermines sugar reduction efforts
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.
This situation entails severe risks for the world’s population.
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).