Fine food retailers have called for greater efforts to educate consumers after the Government set out plans to expand a tax on sugar in beverages.
In May, ministers published a consultation on proposals to lower the threshold for products to be caught by the Soft Drinks Industry Levy (SDIL), and remove an exemption for milk-based items.
Under the tax, most sweetened, pre-packaged, non-alcoholic drinks with 5g total sugar per 100ml are subjected to a charge of at least £1.94 per 10 litres sold. Exceptions include non-alcoholic beer and wine, fruit juices, cocktails, certain formulas and those that are at least 75% milk.
The Government is now consulting on proposals to reduce the threshold to 4g per 100ml and remove the exemption for beverages based primarily on milk or substitutes. It said this would capture significant additional sales.
Farm Retail Association chair Emma Mosey said tightening the levy was “a positive direction of travel”.
“The problem is that consumers don’t realise from packaging which products are healthy or otherwise because of the marketing methods of larger retailers in the past,” she added. “I am not generally pro-taxation but it is great that we are encouraging people to make healthier decisions.
“It offers an opportunity for farm shops to highlight and promote healthy options.”
Heather Copley, owner at Farmer Copleys, said the Yorkshire farm shop offers drinks at various sugar levels.
“People choose which they want, they don’t seem to be affected by the price,” she added. “I don’t think the tax will impact consumer choices; it might be better to educate and use labelling to raise awareness.”
However, she conceded that tightening the SDIL could affect stocking decisions.
“It could make some products commercially unviable for us. It is also another headache but we have to take it in our stride.”
Laura Roberts, owner of South London deli Laura’s Larder, said a balanced view was required of the pros and cons of different foods.
“As a parent, I have always thought it is up to me to educate my children on the health aspects of sugar. Some of the Frappuccinos on the market have ice cream and cake; they are sundaes.”
Roberts cautioned that the tax could drive manufacturers towards artificial sweeteners that are not counted as sugar under the current legislation.
“As a fine food retailer, I believe in championing quality, balance and real ingredients.”
This article first appeared in the June-July 2025 issue of Fine Food Digest.
