Portugal’s Ministry of Health has calculated that the tax on high-sugar beverages, introduced in February, has reduced soft drink sales by 25%.
The Deputy Secretary of State and Health, Fernando Araújo, told Jornal de Negocios that in February high-sugar beverages accounted for 45% of total soft drink sales, while those with lower sugar content accounted for 55%. After the tax was introduced, however, there was a large shift in consumption, with high-sugar drinks accounting for only 27% of sales in July.
He added that new limits will be introduced to stimulate the industry to further cut the sugar content in beverages.
Sugar Tax
Portugal's soft drinks tax yielded €46.7 million in the first six months of collection, according to figures released by the Government, which forecasts that revenue at end of the year will reach about €80 million.
Beverages with less than 80 grams of sugar per litre pay a €0.027 fee per 33 cl can, while those above 80 grams pay €0.055 per can.
The introduction of the tax has also led producers, such as Sumol, to change their formulas, while Coca-Cola has adapted its advertising campaigns, placing a greater promotional effort on its sugar-free variety, Coca-Cola Zero.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
