Summary
The failure of the UK food industry to meet the voluntary 5% sugar reduction target established in 2016 is leading to increased calls for mandatory action, given the effectiveness of the Soft Drinks Industry Levy (SDIL) in stimulating reformulation efforts which resulted in an 11% reduction in sugar usage. Despite the failure to meet the ambitious first year target efforts to reduce sugar usage in food and drink products appears to on track, with this being likely to carry implications for ACP sugar exporters.
For low cost ACP sugar exporters analysing in detail the trends in sugar usage in the UK food and drink sector set out in the PHE report could assist in formulating strategies to reduce their vulnerability to the long term trend towards reduced sugar usage in food and drink products. Unfortunately for higher cost ACP sugar exporters the longer term trend in UK sugar consumption is likely to be just another nail in the coffin of their traditional sugar exports.
Since 2016 regulatory initiatives to limit sugar consumption have bene underway in the UK consisting of both a voluntary sugar reduction plan and the introduction of a new tax on the sugar content of soft drinks, the so called Soft Drinks Industry Levy (SDIL) (see epamonitoring.net companion articles, ‘Multiple challenges pending for ACP sugar exporters’, 1 May 2017 and ‘Trend Towards Reduced Sugar Content for Processed Food and Drink Products Taking Hold’, 2 October 2017). On 22nd May 2018 Public Health England (PHE) released a review of progress made to date in these various sugar reduction initiatives, covering the period from August 2016 to August 2017.
Under the voluntary code an ambitious target of a 5% reduction in the first year of operation (against a 2015 baseline) and a 20% reduction by 2020 was set for ‘the food industry, including retailers, manufacturers, restaurants, cafés and pub chains’. In the first year reviewed PHE identified a 2% reduction in the average sugar content of retailers and manufacturers, with this being described as ‘an encouraging initial start’
Public Health England takes the view that with more sugar reduction plans set to come on line progress in voluntary sugar reduction initiatives should accelerate (1). This includes for example the use by Nestle of a new restructured sugar ‘made by spraying sugar, milk and water into warm air and drying the mixture’. The more intense sugar flavour this gives rise to has reduced the sugar content of Milkybar Wowsomes by some 30% compared to standard Milkybars. PHE representatives claimed the Nestle initiative showed the role innovation could play in ‘making everyday foods healthier’ (2).
However these types of initiatives need to be seen against the back drop of the staggeringly high levels of sugar contained in most chocolate confectionery. According to press reports ‘A Terry’s Chocolate Orange contains 58.5g of sugar per 100g. A Cadbury Crunchie contains 65g per 100g. Of the top 20 brands, only Nestlé’s Kit Kat Chunky has decreased in sugar (now at 52.7g per 100g) – by reducing the portion size and calorie count – and Cadbury’s Double Decker has actually gone up’ (3).
The 8 food categories targeted by this voluntary initiative include:
- breakfast cereals;
- yoghurts;
- biscuits;
- cakes
- morning goods;
- puddings;
- ice creams, lollies and sorbets;
- confectionery and sweet spreads (including the sub-categories of chocolate spread peanut butter, desert toppings/sauces and fruit spreads) (4).
Within the PHE strategy businesses are encouraged to adopt 1 of 3 approaches in regard to their top selling products, namely by:
- reducing sugar levels through product reformulation;
- providing smaller portions to the purchaser/consumer;
- encouraging consumers to purchase lower or no sugar products.
Within these 8 categories the PHE assessment revealed:
- there have been reductions in sugar levels across 5 categories
- yoghurts and fromage frais, breakfast cereals, and sweet spreads and sauces have all met or exceeded the initial 5% sugar reduction ambition.
However particular challenges are faced in achieving sugar reduction in the restaurant, café and pub sectors, where portion sizes can be up to double the portion size of those of retailers and manufacturers (1).
The CEO of PHE has emphasized that if the obesity crisis is to be addressed then ‘the whole food industry’ needs to step up to the plate, including those businesses which ‘have as yet taken little or no action’ (1). Press reports highlighted how during the period under review the ‘sugar content in biscuits and chocolate confectionery did not change’, while ‘sweet confectionery managed a 1% reduction while the average sugar content in puddings increased by 1%’ (4).
Outside of PHE the progress to date has met with a mixed response. The Chair of the BMA’s board of science committee Professor Dame Parveen Kumar described the assessments findings as showing ‘a very disappointing lack of progress in tackling the massive problem of childhood obesity’. She attributed this to the Governments’ ‘weak plan’ in a context where a robust strategy was required. She highlighted how progress to date ‘hasn’t even come close to meeting the target 5% reduction’ (4).
For its part the Obesity Health Alliance described progress as a ‘disappointment’ and ‘called for a revamped obesity plan’ (3). Against this background the ‘PHE continues to call for increased action from all sectors of the food industry to achieve the 20% reduction ambition by 2020’ (1).
Indeed on the same day the report was released PHE announced ‘new guidelines for the drinks industry to reduce the amount of sugar children consume through juice and milk based drinks’ (1). Under these guidelines the drinks industry is encouraged to:
- ‘reduce sugar in juice based drinks (excluding single juice) by 5%
- cap all juice based drinks (including blended juices, smoothies and single juices) likely to be consumed in one go to 150 calories
- reduce sugar in milk (and milk substitutes) based drinks by 20% and cap products likely to be consumed in one go to 300 calories’ (1).
Meanwhile drinks covered by the UK Governments’ Soft Drinks Industry Levy (SDIL) have seen an 11% reduction in sugar usage in response to the SDIL. This is seeing people buying more drinks which are below the SDIL cut off of 5grams per 100 grams (1).
Professor Dame Parveen Kumar claimed the relative success of sugar reduction initiatives under the voluntary code and in response to the SDIL ‘proved that relying on manufacturers to voluntarily reduce sugar in their products was a false economy’. She claimed ‘change will only come through a mandatory approach backed up by regulation’ (4).
In response to the report the UK Food and Drink Federation (FDF) said ‘companies were engaging with what are sometimes difficult technical issues’ (3). FDF representatives stressed how ‘over the last five years FDF members have reduced calorie content in the average basket by 5.5% and sugar content by 12.1%’ (4).
The relatively slow progress of voluntary sugar reduction efforts has led some press analysis to suggest ‘the government may be forced to introduce a tax, as with sugary drinks’ (4). Citing international evidence of the success of such measures, Action on Sugar is leading calls for an energy density tax on confectionery similar to the SDIL, (8). Alongside calls to make nutritional labelling on menus and packaging mandatory and ban marketing of HFSS (high in fat, salt and/or sugar) products (9), this forms part of Action on Sugars’ seven point ‘evidence-based plan to prevent obesity, type 2 diabetes, raised blood pressure, cardiovascular disease and cancer in the UK’ (10).
| Comment and Analysis Although progressing at a slower rate than the ambitious targets require, initiatives to reduce the sugar content of food and drink products are firmly on track in the UK . The detailed PHE review indicates the product areas where this trend is most advanced and the variable progress made in different food product categories (5, 6). This breakdown of changing patterns of UK sugar demand could potentially be of value to ACP sugar exporters in identifying the vulnerability of their existing markets to this public policy led trend towards reduced sugar consumption. Potentially for competitive ACP sugar exporters, this could assist them in repositioning their exports in the light of the varying trends in sugar reduction rates. However this will require ACP sugar exporters to develop a far better understanding of the end use to which their sugar is destined. In this context ACP sugar exporting countries with close corporate relationships with major UK sugar companies are potentially in a better position to respond to evolving trends. For less price competitive ACP sugar exporters the current trend towards reduced use of sugar in food and drink products will simply ensure another nail in the coffin of their current sugar export trade. Less price competitive ACP sugar exporters are already suffering dramatic market losses as a result of the abolition of EU sugar production quotas and the large scale expansion of EU27 sugar exports to the UK market since October 2017 (see companion epamonitoring.net article, ‘EU Sugar Quota Abolition Begins to Eat at ACP/LDC Export Volumes and Earnings’, 10 May 2018). |
Source:
(1) Public Health England, ‘First measure of industry progress to cut sugar unveiled’, 22 May 2018
https://www.gov.uk/government/news/first-measure-of-industry-progress-to-cut-sugar-unveiled
(2) Guardian, ‘Nestlé says it has harnessed science to reduce the sugar in chocolate’, 27 March 2018
https://www.theguardian.com/science/2018/mar/27/nestle-says-it-has-harnessed-science-to-reduce-the-sugar-in-chocolate
(3) Guardian, ‘Food industry in England fails to meet sugar reduction target’, 22 May 2018
https://www.theguardian.com/society/2018/may/22/food-industry-in-england-fails-to-meet-sugar-reduction-target
(4) foodnavigator.com, ‘British food firms fail, on government’s 5% sugar reduction target’, 22 May 2018
https://www.foodnavigator.com/Article/2018/05/22/British-food-firms-fail-on-government-s-5-sugar-reduction-target
(5) Public Health England, ‘Sugar reduction and wider reformulation programme: Report on progress towards the first 5% reduction and next steps’, May 2018
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/709008/Sugar_reduction_progress_report.pdf
(6) Public Health England, ‘Sugar reduction and wider reformulation programme: Report on progress towards the first 5% reduction and next steps: Detailed assessment of progress for each product category in the sugar reduction programme’, Appendix 3, May 2018/
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/709010/Category_specific_results.pdf
(7) Public Health England, ‘The problem with sugar’, May 2018
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/710312/Sugar_reduction_and_wider_reformulation_layman_s_summary.pdf
(8) foodmanufacturer.co.uk, ‘Action on Sugar calls for confectionery tax’, 23 May 2018
https://www.foodmanufacture.co.uk/Article/2018/05/23/Pressure-group-calls-for-confectionery-tax
(9) Action on Sugar, ‘The Conversation Continues… Call for Theresa May to Introduce an Energy Density Levy on Confectionery, Make Nutritional Labelling on Menus & Packaging Mandatory and Ban Marketing of HFSS Products’, 22 May 2018
http://www.actiononsugar.org/news-centre/press-releases/2018/the-conversation-continues-call-for-theresa-may-to-introduce-an-energy-density-levy-on-confectionery-make-nutritional-labelling-on-menus–packaging-mandatory-and-ban-marketing-of-hfss-products.html
(10) Action on Sugar, ‘An evidence-based plan to prevent obesity, type 2 diabetes, raised blood pressure, cardiovascular disease and cancer in the UK: A benchmark for Theresa May’s updated plan for action’,
http://www.actiononsugar.org/media/action-on-salt/Healthy-food-and-drink-strategy-FINAL.pdf