Blog: Drinks tax moves up the agenda
Chris Mercer | 28 October 2011
The idea of a sin tax on unhealthy food and drink is gaining credence as Governments seek to plug revenue holes any way that they can.
Within the last month, France's Parliament has voted to introduce a special levy on added sugar soft drinks, as well as a lesser levy on soft drinks containing sweeteners. In Denmark, meanwhile, the Government there has said it will introduce a tax on fatty foods, thought to be the first targeted 'fat tax' anywhere in the world.
It is a scenario that alcohol producers are already well aware of. The European Commission and the World Health Organisation have both endorsed duty tax rises on alcohol as one of several means of persuading people to stop drinking to excess.
The health debate around alcohol, fatty foods and added-sugar soft drinks has been raging for some time. But, are we witnessing a change in governmental thinking?
It's hard to judge, because individual governments have their own agendas and ideological positions. In the UK, for example, ministers of the Coalition Government, elected last year, have been clear that they are not seeking to change consumer behaviour via regulation. This, however, has not stopped the UK Treasury from increasing duty tax on beer, wine and spirits.
There are signs that the effects of so-called lifestyle diseases are being taken more seriously, as witnessed last month by the United Nations holding its first General Assembly meeting on non-communicable diseases.
Over the next 20 years, non-communicable diseases will cost the global economy more than $30tn, or 48% global gross domestic product (GDP) in 2010, UN delegates were informed by the director-general of the World Health Organisation, Dr Margaret Chan.
At the same time, many national and state economies are under intense pressure to increase revenue and cut debt. The logical conclusion is that sections of government health departments that are in favour of taxes are perhaps finding more friends in government finance departments. More sin taxes, then, could well be on their way.
Could it happen? According to this report, a section of the beer community wants to ditch the word craft. They prefer instead the term “Indie” for brewers they believe follow the enlightened path of t...
The global elite were in Switzerland last week for the World Economic Forum in Davos, the annual corporate huddle for the rich and powerful. The CEO of The Coca-Cola Co, Muhtar Kent, was there too, de...
With The Coca-Cola Co stealing yesterday's limelight with its new united marketing strategy for brand Coke yesterday, a Forbes interview with PepsiCo North America Beverages' new CMO, Seth Kaufman, sl...
It is a bold attempt to regain a measure of control in the ever-spiraling debate about sugar. But will The Coca-Cola Co's new marketing strategy - which for the first time ties all of the Coke family ...
- Aus wine industry pays price for past failures
- What's in store for Super Bowl 50 - Focus
- Six key trends for alcoholic drinks in 2016
- Carlsberg's Q4 & Full Year - Preview
- Ten things to know about spirits in the US
- William Grant & Sons restructures US team
- Diageo completes wine category exit in US
- Diageo's Orphan Barrel The Gifted Horse - NPD
- Beam Suntory targets Kenya with Edrington/FIX
- Diageo's Oban Little Bay single malt Scotch - NPD
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research