British Soft Drink Makers Lower Sugar Content To Evade New Tax

Coca-Cola European Partners CEO Damian Gammell said 40 percent of its U.K. product line has already lowered sugar levels enough to dodge the country’s new sugar tax. Only the flagship energy brand Monster and full-sugar Coca-Cola products – "essentially Coke Red and Monster Green" – remain taxable because of sugar content. The taxable threshold for soft drinks in the U.K is 5 grams of sugar per 10 centiliters (~3.4 fl. ounces). The tax rate for drinks with more than eight grams is £0.24 (29¢) a liter. Several British soft drink manufacturers have reformulated their beverages to avoid the tax. Fanta Orange and Sprite now have a third less sugar, bringing them under the threshold.