The sugar tax poses huge risks for the food and drink industry in the UK. But could a sensible forward-thinking strategy turn it into an opportunity?

1. The proposed sugar tax has
inflamed passions across
the food and drink industry.
Some industry authorities have used
the tax to attack celebrity chefs.
In 2015, the UK sugar tax seemed to be a huge
looming risk for the industry, but since then have
food and drink producers managed to turn it into
an opportunity?
Sugar Tax
Risk or Opportunity for
UK Food and Drink?
etq.com
THE RISKS
20%of 5-year-olds in the UK
are overweight or obese
Nestlé used it as the impetus
to create a whole new type of
chocolate with
40% less sugar.
WHY HAVE REACTIONS BEEN
SO DIFFERENT?
It all comes down to whether
businesses treat the tax as a
risk or as an opportunity.
46% of consumers
are monitoring or reducing sugar consumption
A French sugar tax has decreased
cola consumption
by 3% annually
As of 2018, the UK will levy 18p and 24p per liter
on sugary drinks
THE CLEAR RISK IS THAT A SUGAR TAX COULD HARM
AN INDUSTRY ALREADY SUFFERING THE EFFECTS OF AN
“OBESITY CRISIS.”
UK manufacturers are committing to
a 250 kcal cap on servings of sweets
Consumers want
healthy options and
spend more to get them
Nestlé has managed to reduce sugar content in
chocolate by 40%
Over 57%
of the soft drinks market is
now low sugar
On the other hand, the industry is moving to
embrace a low-sugar future, which is engaging
previously worried customers.
Manufacturers aren’t abandoning sugar on a whim.
Or because of Jamie Oliver.
THE OPPORTUNITY
IT’S DOWN TO RISK MANAGEMENT.
1 Manufacturers identified
a risk – the sugar tax
3 They prioritized sugar
reduction in their planning
4 Finally, manufacturers
developed and released solutions
5 The risk (lower profits) is now an
opportunity (new products)
2 They modeled the effects
By adopting risk-based thinking, identifying problems and
developing solutions in advance, you’ll keep your company right in
the sweet spot where risks become opportunities.
Learn how to turn your risks into an
opportunity for success, download:
The Risk Management
Handbook: Supporting a Quality
Culture Across Your Business
etq.com
The Risk Management
Handbook — Supporting a
Quality Culture Across
Your Business
Risk-based thinking is fundamental to quality culture,
and involves extending risk management across all your
operations. In this guide, we show you how.
Takeaways
In 2015, the UK
food and drink
industry reacted
angrily to the
risks posed by
the sugar tax. But
the conversation
has moved on.
The market has
already begun to
move away from
sugary foods,
posing a risk to
the industry even
without the tax.
However,
consumers are
happy to pay
a premium for
low sugar foods,
providing an
opportunity -
one that was
recognized.
Forward-thinking
companies used
risk management
processes to
give themselves
enough time
to create new
products with
less sugar that
wouldn’t be hit
by the tax.
By identifying
the risk and
taking action,
the industry has
turned the sugar
tax into a huge
opportunity for
new products
and further
growth.
Download the eGuide now!