NEWS
Sugar tax will hit business but won’t solve health crisis, warn fine food producers By Greg Pitcher
Fine food producers have warned ministers that a blanket sugar tax could have a major impact on their businesses while failing to tackle health problems. The Governmentcommissioned National Food Strategy has recommended a £3/kg levy on the sale of sugar for use in processed food as part of a campaign to cut obesity, reduce the burden on the NHS and benefit the environment. Led by catering businessman Henry Dimbleby, the study said the tax – along with a £6/kg duty on salt – would “encourage producers to reformulate their products”. “Where products cannot be reformulated, and remain high in sugar and salt, the increased cost might be passed on to the consumer,” said the report. “This would make such products less appealing.” Emma Macdonald,
The proposed tax would replace the current soft drinks industry levy
founder of Devon-based fine food maker The Bay Tree, said there was “a lot of detail to be ironed out” in how the sugar tax would work in practice. “What would be defined as processed food?” she asked. “There must be an exemption for foods that require sugar or salt for traditionalism and shelf life. Jam does not set without sugar, so you are affecting the dynamics of a product if you cut it out. “And what will be done
Acquisition will ‘supercharge’ The EPoS Bureau’s offer to indies The EPoS Bureau has said its acquisition, by the ClearCourse group, will only serve to improve the company’s offer to existing independent retail customers – as well as allow it to offer services to retailers with a smaller footprint. Founder Nigel Bogle told FFD that accepting the approach from the London-based group of technology companies was a “no brainer”, given the capabilities it would offer. He added that he would remain at the helm of the Northern Ireland-based business and it would be continuing to focus on the independent food retail market. It already provides point-of-sale
and back-office systems to some 200 farm shops, delis, cheesemongers and butchers. Bogle said that joining the group means that the company will be able to keep existing customers “ahead of the curve”, and it would also allow The EPoS Bureau to cater to smaller delis that it wouldn’t have previously had systems for. “ClearCourse has payment systems, loyalty systems, membership schemes and other products and services that we will be able to offer to our clients,” said Bogle. “Being part of ClearCourse will supercharge our business.” theeposbureau.com clearcoursellp.com
with the money raised? Will it be spent on educating kids about the importance of the right diet? If we don’t change eating habits, then the tax will not work.” Ruby Williams, founder of Worcester-based Ruby’s Fudge, said she would be unable to change her recipes without dramatically altering her products, so would have to pass on the cost to retailers. “I am a very small food producer,” she said. “Profit margins can be very
tight. I fear that if the tax is implemented, it would make it much less appealing to the consumer, resulting in sales dropping.” She called for policy aimed at tackling obesity to be precisely targeted. “I do understand that the nation’s sugar problem needs to be addressed but it needs to be done so in products with hidden sugars.” A Defra spokesperson said: “What we eat and drink, and how and where it is made is part of our nation’s story. “It provides employment opportunities, contributes to economies, shapes the landscapes we all value and creates a sense of local pride and identity, right across the UK. “The Government is considering the recommendations made in Henry Dimbleby’s review and will respond with a White Paper within six months, setting out our priorities for food systems.”
In detail: the sugar tax l The Government would introduce a £3/kg tax on sugar sold for use in processed foods or restaurants and catering businesses. l This would replace the Soft Drinks Industry Levy. l The tax would apply to all sugar and other ingredients used for sweetening. l It would not apply to sugar used in home cooking. l Imports of processed food would be taxed according to sugar content when they enter the UK. l The taxes would be introduced through primary legislation in the 2024 Finance Bill. l There would be a three-year period before implementation to facilitate adaptation. l A series of measures would ensure that low-income households received financial support to prioritise healthy eating, including an expansion of free school meals. l The estimated reduction in sugar consumption would bring the UK up to 83 per cent closer to a target level of 30g per person per day, said the report. l This would reduce the average calories eaten per person per day by up to 38kcal, which could halt weight gain at a population level, according to the paper.
WHAT THEY ARE SAYING ABOUT... THE IMPACT OF A PROPOSED SUGAR DUTY EMMA MACDONALD FOUNDER, THE BAY TREE
“We can use less sugar in our preserves but it will dramatically alter the product – creating more of a compote than a jam, for example – which will change consumer perception. We could end up with a two-tier market of more expensive products and cheaper alternatives that have a different market.” RUBY WILLIAMS FOUNDER, RUBY’S FUDGE
“The cost would have to be passed on to the consumer, sadly. If sales decline, or shops do not want to take on the price hike, then I would have to put more effort into selling direct to the consumer. I currently supply solely to independent shops, so this could also affect the local economy.” NATIONAL FOOD STRATEGY Report led by Henry Dimbleby
“A tax on the amount of sugar and salt used in [processed] foods will create a significant incentive for companies to reformulate their products so as to avoid having to put the price up, which would be damaging to their business in the UK’s highly competitive and price-sensitive food market.”
Vol.22 Issue 8 | September-October 2021
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