Are you ready for the sugar tax?

How to prepare for the sugar tax

sugar tax

The Soft Drinks Industry Levy, commonly known as the Sugar Tax, is scheduled to come into force in April 2018. The tax will apply to drinks which are high in sugar and soft drinks producers will be charged a levy for these drinks across two bands. The more sugar present, the higher the tax levy.

  • Drinks with added sugar and total sugar content of 5g or more per 100ml which equates to approximately 5% sugar content
  • Drinks with added sugar and total sugar content of 8g or more per 100ml which equates to approximately 8% sugar content

The Office for Budget Responsibility estimates the levy could add 18p to 24p to the prices of a litre of fizzy drink if the cost is passed on to the consumer.

So what are the options?

Some companies may choose to do nothing and accept the tax, commercially this is not an attractive option. A viable route could be to look at the reformulation of recipes so they come under the threshold. You don’t need to go back to the drawing board; Simpsons expertly reformulate soft drinks to offer lower sugar alternatives, thereby saving companies considerable reinvestment and a brands’ reputation.

Innovation is something we strongly believe in at Simpsons. We’ve been researching replacements to sugar in drinks for some time to help our customers adapt and reduce the amount of sugar in soft drinks, thus enabling us to continue supplying great tasting alternatives which are below the levy threshold. For example, we have been looking at Stevia, a natural product derived from the leaves of the plant species ‘Stevia Rebaudiana’ and has been used in South America to flavour drinks for more than 200 years.

The reformulated recipes we are producing taste great, but don’t take our word for it; ask us to help you reformulate and we can work together to produce samples, testing and refining to make the perfect drink.

Sugar Tax calculator

To help companies work out how much the levy will cost them, we have devised a Sugar Tax Calculator. It will tell you whether your drink formula will incur the levy, and if so by how much. Please take a look, and if you have any further questions about the levy, please get in touch. We’d be delighted to offer any insight that may help you.

The Sugar Tax clock is ticking…

Many of our customers are already prepared for the sugar tax as things take time to get through the supply chain and on to the shelves, and it is imperative to phase in new stock in time for April 2018. Take action now to ensure everything is in place before April is upon us.

Don’t get caught out!

We are offering free samples of our existing ‘below the levy’ products. Contact us to find out for yourself that the reformulated drinks we can produce for you genuinely taste great, are wonderfully refreshing and more than capable of keeping your customers sweet!


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