U.K. to extend sugar tax to milk-based drinks

London British supermarkets are now at the forefront of a battle against sugar. This week, the U.K. government announced an expansion of its sugar tax to cover certain coffee beverages and milk-based drinks, including milkshakes, flavored milks, chocolate milk, sweetened yogurt drinks, and specific coffees, as part of its ongoing strategy to curb obesity.

Dr. Kawther Hashem, a nutritionist who advocated for the tax, explained to CBS News that sugar is the leading cause of hospital admissions among children in the U.K. To make a meaningful impact, we had to start with the biggest source, which was soft drinks, Hashem said.

The original sugar levy, implemented in 2018, charged up to 30 cents per liter for drinks containing 8 grams or more of sugar per 100 milliliters, depending on sugar levels. Rather than passing the cost to consumers, many companies chose to reformulate their products, reducing sugar and often replacing it with artificial sweeteners like aspartame. As a result, U.K. versions of certain drinks now differ significantly from those sold under the same brand in the U.S.

The expanded tax gives manufacturers and importers until January 2028 to meet the new standards. The government emphasized that previous success came from companies halving sugar content in popular drinks to avoid the levy and expects a similar response with this extension. The threshold for taxation will also be reduced from 5 grams to 4.5 grams of sugar per 100 milliliters.

Research from the University of Cambridge in 2023 suggests that for 10- and 11-year-old girls, the tax prevents around 5,000 cases of obesity annually.

Jules Dunlop, an American mother living in the British countryside, said the reformulated products have noticeably less sugar than their U.S. counterparts. Despite not being health-focused, she and her family find that the lower sugar content provides more energy and clearer skin. Just having that baseline of less sugar here has made such a difference, Dunlop remarked.

Some U.S. cities have introduced sugar taxes, but without a nationwide policy, it is unlikely that manufacturers will adjust formulas on a broad scale.

Analysis: Expanding the Sugar Tax in the U.K.

The recent expansion of the U.K. sugar tax marks a deliberate step in the government’s ongoing public health strategy. By including milk-based beverages, flavored milks, milkshakes, sweetened yogurt drinks, and specific coffees, authorities are targeting sugar sources beyond soft drinks, which were previously the primary focus.

Evidence suggests that these measures have tangible results. The original 2018 levy prompted manufacturers to reformulate products, often lowering sugar content without significantly increasing prices. Studies, including research from the University of Cambridge, indicate that such interventions can prevent thousands of obesity cases among children annually, demonstrating measurable public health benefits.

The extension sets a clear timeline, giving manufacturers and importers until January 2028 to comply. Lowering the taxation threshold from 5 grams to 4.5 grams of sugar per 100 milliliters reinforces the government’s commitment to reducing sugar consumption across widely consumed beverages.

Early reactions from consumers, such as U.S. expatriates living in the U.K., highlight the noticeable differences in sugar content and its perceived health benefits. This contrasts with the U.S., where localized sugar taxes exist but lack a nationwide approach, limiting broader reformulation of products.

In summary, the U.K. sugar tax expansion builds on a proven framework, incentivizing manufacturers to reduce sugar content while aiming to improve public health outcomes over the next decade.

Sources:

• U.K. expanding its sugar tax to include milk-based drinks