The joint open letter, which includes global companies such as Coca-Cola, Carlsberg, and Paulaner had urged the German federal government not to introduce a levy onto sugary soft drinks.
According to reports the decision is part of a health care reform package aimed at tackling obesity in the country. The full details of the levy are still in discussion but is expected to launch in 2028.
The UK introduced its Soft Drinks Industry Levy (SDIL)in 2018, giving drinks companies two years to reformulate before its introduction. The UK has recently updated its SDIL by lowering threshold at which the levy kicks in while extending it to milk-based drinks.
The companies that have signed the letter said they support the position held by the Economic Association of Non-Alcoholic Beverages, the Association of German Mineral Springs, the Association of the German Fruit Juice Industry, the German Brewers’ Association, that such a policy would add burdens to both companies and consumers.
The letter raised concern about the impact of the levy on beverage businesses, many of whom are medium-sized and family-owned enterprises. These businesses have already faced significant strain due to rising costs of energy, logistics, packaging and labour as well as the impact of reduced consumer spending and the ongoing crisis in the hospitality sector.
The signatories also said they were concerned about how a levy would impact on consumers, particularly low-income households.
At the same time, they questioned the effectiveness of a sugar tax as a public health measure, while pointing out that the industry had already made progress in reducing sugar content.
From the beverage industry’s perspective the signatories highlighted that a sugar tax would neither resolve the complex causes of obesity and diet-related diseases nor make a sustainable contribution to stabilising the statutory health insurance system.
It also argued that a sugar tax would not generate reliable fiscal revenue, as existing models overlook the predictably high costs of tax collection and monitoring.
