Search results: soda tax

A reader in Australia writes that she “just came upon a doozy of an industry-funded paper.”

Title: Sales of Sugar-Sweetened Beverages in Australia: A Trend Analysis from 1997 to 2018, by William S. Shrapnel and Belinda E. Butcher.  Nutrients 2020, 12, 1016; doi:10.3390/nu12041016.

Conclusion: Major, long-term shifts are occurring in the market for non-alcoholic, water-based beverages in Australia, notably a fall in per capita volume sales of SSBs and an increase in volume sales of water. Both trends are consistent with public health nutrition strategies for obesity prevention and suggest that the downward trend in the percentage of dietary energy from added sugars in the Australian diet may be continuing.

Funding and Conflicts of Interest: This analysis was funded by an unrestricted grant from The Australian Beverages Council Ltd. The funders had no role in the design of the study; in the collection, analyses, or interpretation of data; in the writing of the manuscript, or in the decision to publish the results.

So what’s the problem here (besides the usual questions about the accuracy of the “no role” statement)?

The clue comes from an article in Food Navigator Asia: “Not a taxing question: Australian sugar sweetened beverage consumption slumps as obesity rates continue to soar.”

The article quotes a representative of the Beverage Council:

Obesity is multi-factorial, the reason why people become overweight and then obese, is because of the lack of physical activity, a sedentary lifestyle, and also poor diet…a sugar tax alone would not reduce the obesity rates in the country, and was a complex challenge for the government to overcome.  The beverage industry is against a sugar tax, and SSB tax.  The evidence and science behind the effectiveness of a sugar tax is weak.

Comment: The point of this study is to produce evidence against the value of soda or sugar taxes, even though sodas are still the largest source of sugars in Australian diets, and taxes have been shown to reduce consumption in other countries.  When it comes to sugary drinks, less is better.

Just for fun, here’s Healthy Food America’s 2019 map of countries with soda taxes.

We need some good news.   I can offer two items.

1.  Coca-Cola says it will align executive pay to employee pay

Coca-Cola has agreed to “consider the wages it pays all of its employees when setting executive salaries”, for the purpose of aligning them more closely.

This happened as the result of action by the New York State Common Retirement Fund.  The Fund complained that CEO compensation has increased enormously while average wages have made meager gains, to the point where the ratio of CEO to worker compensation has gone up in some instances by nearly 1,400%.

According to Food Dive’s account

Following the agreement with the beverage giant, the fund, which is among the company’s top 50 shareholders with 9,275,387 shares as of the end of 2019, withdrew a shareholder resolution against the company. Coca-Cola agreed to add language to its upcoming proxy statement that said “the compensation approach used to set CEO and (named executive) pay” would be the same one it uses to determine compensation for the broader workforce.

Food Dive points out that

Coca-Cola CEO James Quincey made about $18.7 million in 2019, according to a company spokesman. He was paid $16.7 million in 2018. As of April 1, 2019, Quincey’s base salary was increased 6.7% to $1.6 million “to align (it) with the competitive market,” the beverage company said in a recent proxy.

What this means in practice remains to be seen.  It’s hard to imagine that executives will get a pay cut but maybe employees will see a pay raise?  Let’s hope so.  In any case, cheers to State Comptroller Thomas P. DiNapoli for using the Retirement Fund’s clout.

2.  While it lasted, Chicago’s Soda Tax worked

Chicago passed a soda tax but then rescinded it four months later under pressure from the American Beverage Association, which whipped up public opposition.

Now, a study in the Annals of Internal Medicine, reports that during the months the tax was in effect, the sales volume of taxed sodas dropped by 27% in Cook County relative to St. Louis.  The net decrease was 21% after cross-border shopping was accounted for.

The tax raised nearly $62 million—in those four months—of which nearly $17 million went to a county health fund.

No wonder the American Beverage Association so strongly opposes soda taxes.

• They reduce sales
• They generate funds for health and social purposes

Jonathan Marks.  The Perils of Partnership: Industry Influence, Institutional Integrity, and Public Health.  Oxford University Press, 2019.

I blurbed this one:

Jonathan Marks is the go-to expert on the hazards of public-private partnerships.  His account of the perils reads easily, is well referenced, is clear and to the point, and applies to partnerships with drug, food, and any other corporations.  Anyone who cares about the ethical implications of such partnerships for public health will find this book invaluable.

The book is about industry partnerships in general, but Marks uses food-company examples such as the American Beverage Association’s gift to the Children’s Hospital of Pennsylvania in what seemed to be a direct exchange for the city’s dropping a soda tax initiative, and the USDA’s promotion of cheese.

Marks concludes that

Public-private partnerships, multistakeholder initiatives, and other close relations with industry are premised on a positive conception of consensus, compromise, and collaboration.  But the “three C’s” are not inherently good.  On the contrary, tension between regulators and corporations is ordinarily necessary to protect public health.  And achieving common ground with industry may put off the table measures that might promote public health.  The default relation between industry and government should be arm’s lengths relations involving institutional tension, “struggle,” and direct conflict.

The point: the agenda of corporations is to promote profit, not public health.  This creates an inherent tension, not easily resolved.

Healthy Food America is relatively new on the food advocacy scene but I am always impressed by the useful resources it produces.

It is my go-to place for information about soda taxes and other ways to reduce sugars and sugary drinks.

It offers, for example:

• Soda tax maps
• Report with Ninjas for Health on Coca-Cola’s involvement with researchers and reporters
• Toolkit for advocates working to reduce sugars
• Research Watch summaries
• Daily news feed

Useful?  Yes!

Healthy Food America is a relatively new organization.  Based in Seattle, it

Acts on science to drive change in policy and industry practice so that all people can live in places where nutritious food is easy to obtain and exposure to unhealthy products is limited..  We are coordinating with other advocates to energize a national movement to roll back added sugars in food and beverages to healthful levels.​

It runs a blog, publishes a newsletter, and produces useful information.  I was particularly interested in its information on diet drinks.

It’s Policy Brief discusses whether or not artificially sweetened beverages should be included in soda tax initiatives.

Sugary drink taxes were conceived of as a strategy to prevent chronic health conditions by reducing consumption of sugar. Recently, however, some jurisdictions have included artificially sweetened, or “diet”, beverages. There is strong scientific evidence associating sugary drinks with higher rates of chronic diseases such as type 2 diabetes, heart disease, high blood pressure, liver disease and dental disease. The evidence of harm from diet drinks is less certain.  Therefore, we recommend not including diet drinks in beverage taxes.

Its Research Brief summarizes the evidence linking artificially sweetened beverages to disease risk.

This research brief summarizes:

1) reviews or meta-analyses of prospective cohort studies that analyzed the association between ASB consumption and disease risk,

2) randomized trials that studied the metabolic and health effects of ASB consumption, and

3) randomized trials that studied the effect of ASB consumption on weight loss.

Reviews and meta-analyses were restricted to those published in the last 5 years, to ensure that this brief reflected the latest science. All studies were obtained through PubMed searches.

It helps to have all this.

FoodNavigator-USA, a food-industry newsletter that I read regularly, publishes occasional “Special Editions,” meaning collections of articles it has published on specific topics.  This one is on Sweeteners and Sugar Reduction,

Food and beverage manufacturers have a far wider range of sweetening options than ever before, from coconut sugar to allulose, monk fruit and new stevia blends. This special edition looks at the latest market developments, the changing political landscape, formulation challenges and consumer research. It will also address some labeling and regulatory issues affecting the market, from new FDA requirements to list added sugar on the Nutrition Facts label and the extent to which the ‘GMO factor’ is impacting purchasing decisions for sweeteners.

• Senomyx unveils ‘natural’ sweetener breakthrough, plans GRAS notification by end of 2019: Senomyx has identified a new zero-calorie, high-potency sweetening compound found in trace levels in monk fruit, which it plans to produce on a commercial scale via fermentation… Read
• Consumers want stevia from the leaf, says PureCircle: ‘They want naturally-sourced plant-based ingredients’: As the technology around producing steviol glycosides continues to evolve, transparency in labeling will be critical if consumer trust in ‘natural’ sweeteners is to be retained, says PureCircle, which claims to be the “clear market leader in terms of production capacity and R&D” when it comes to stevia extracts… Read
• Where next for stevia? From designer glycoside blends to fermentation and enzyme modification: If high purity Reb A used to be the only game in town when it comes to stevia, the game has become a lot more sophisticated in the past couple of years as suppliers compete to provide the best-tasting combinations of steviol glycosides, and products become more application-specific, says Sweet Green Fields chief science officer Mel Jackson PhD… Read
• Allulose could change the sugar reduction game… if labeling rules are changed, says Tate & Lyle: Allulose – an ultra low-calorie sugar found naturally in jackfruit and figs that Tate & Lyle is making in commercial quantities from corn using enzymes – has got some high profile advocates including Quest Nutrition, but would gain significantly more traction if manufacturers were not required to include it as added sugar on US food labels, says Tate & Lyle… Read
• FDA issues GRAS no objection letter for Sweegen’s Bestevia Reb-M – which starts with the leaf, then undergoes ‘enzymatic conversion’: California-based SweeGen has received a GRAS no objections letter from the FDA for the use of its Bestevia branded Reb-M – manufactured from stevia leaf extracts converted to Reb M using enzymes – for use as a general purpose sweetener for food and beverage applications in the US… Read
• Big Tree Farms unveils golden coconut sugar to compete with refined white sugar: ‘This is going to be a truly disruptive sweetener’: Big Tree Farms has developed a paler, finer ‘golden’ organic Fair trade coconut sugar that can replace refined white sugar in applications where coarser, darker coconut sugars aren’t ideal, says the company, which has been selling coconut sweeteners for a decade and is still generating double digit growth year-on-year as consumers embrace their ‘unrefined’ and low-GI credentials… Read
• New kid on the block explores novel business model for stevia production: California-based B’BOX Group claims to have developed a proprietary technique for producing clean-tasting, high-purity stevia extracts that is so fast and cost-efficient that it says leading CPG manufacturers are considering buying the technology and producing their own sweeteners – a new model for the industry… Read
• ADM teams up with GLG Lifetech to add stevia and monk fruit to its portfolio: ADM is bringing two sweetener brands, SweetRight stevia and VerySweet monk fruit, to market following a tie up with Canadian high potency sweeteners specialist GLG Lifetech… Read
• Should foods high in added sugar be disqualified from making nutrient content and health claims?  High levels of added sugar should disqualify foods from being able to make health claims, or nutrient content claims such as ‘healthy’ or ‘high fiber,’ argues a citizen’s petition filed last week by the nonprofit advocacy group the Union of Concerned Scientists… Read
• Confused about added sugar? FDA issues draft guidance on Nutrition Facts changes: The FDA has attempted to clear up some of the confusion over defining and calculating added sugar, in new draft guidance designed to help firms get to grips with the key changes it is making to the Nutrition Facts panel… Read
• Sparkling ICE unveils $37m ad campaign, queries soda tax inconsistencies: ‘It’s a mess’: Talking Rain Beverage Co has unveiled a $37m national ad campaign that president Kevin Klock says will give Sparkling ICE a stronger brand identity – something it has historically lacked, despite its meteoric growth (estimated retail sales have surged from around $10m in 2011 to well over $600m today)… Read
• Ag Committee weighs whether SNAP should pay for sugary drinks: Prohibiting the purchase of sugar-sweetened beverages and other “unhealthy” foods and beverages with SNAP benefits, also known as food stamps, likely would not discourage their consumption, but would be costly and difficult for retailers to implement, industry stakeholders argued on Capitol Hill last week. .. Read
• Kellogg, Post & General Mills hit with wave of lawsuits as plaintiff’s bar turns up the heat on sugar: If a high percentage of the calories in your product are from added sugar, and you are stating or implying that it’s healthy and nutritious, are you at risk of a false advertising lawsuit? A flurry of lawsuits recently filed vs Kellogg, General Mills and Post Foods suggest the answer is yes, although legal experts predict the plaintiffs face an uphill battle… Read
• Misfit Juicery’s two-prong approach to addressing the anti-sugar trend’s threat to juice: Startup Misfit Juicery is taking a two prong approach to the growing threat to the juice category posed by consumers’ increasing concern about sugar, and in doing so is setting itself apart from the competition… Read
• Health advocates argue for a tax on sugary drinks in Canada to save lives and healthcare costs: Twenty-four public health advocates and organizations are calling on the Canadian government to levy a significant tax on manufacturers of sugary drinks to discourage consumption and help fund healthy living initiatives… Read
• In age of sugar reduction and ‘clean label,’ sweetener manufacturers adapt: A combination of shifting consumer demand for ‘clean label’ and a new FDA requirement to list added sugars on nutrition panels means sweetener manufacturers are navigating through new territory… Read
• Chicago snack start-up No Denial Foods targets low-sugar shoppers seeking indulgence: “Sugar is the new fat” when it comes to dietary villains, says No Denial Foods Founder Debbie Wood. “Sugar is going to be on a lot of people’s radar.”.. Read

Here is another one of FoodNavigator-USA’s Special Editions, meaning collections of its articles on specific topics written mostly from the perspective of food beverage companies.  This one is on trends in commercial beverages, and is highly relevant to food politics.

Special Edition: Beverage trendwatching

Few sections of the store are as dynamic as the beverage aisles. Meanwhile, the pressure to ‘clean up’ labels continues unabated. But how can we distinguish passing fads from sustainable trends? And who are the entrepreneurial companies driving innovation in this category?

• Experts weigh in on what the next ‘it’ beverage will be as sales for the once all supreme soda slow: For years, carbonated soft drinks were the go-to choice for Americans to quench their thirst and boost their energy, but in recent years the category has begun to falter – creating an opening for a bevy of innovative beverage brands to emerge, according to industry research. .. Read
• Bone broth sales more than tripled in 2016, albeit off a very small base: The bone broth category (shelf-stable and refrigerated) is pretty small in the scheme of things, but it’s growing rapidly, with US retail sales more than tripling to $19.7m in the 52 weeks to Jan 22,* fueled by a small but highly engaged set of health conscious consumers, Paleo enthusiasts and Whole30 fans, says one fast-growing player… Read
• AQUAhydrate targets ‘everyday warriors’ as premium pH segment continues to grow: Celebrity-backed AQUAhydrate has doubled its distribution over the past 18 months from around 30,000 to 60,000 outlets by appealing to a broad set of ‘everyday warriors’ it claims are seeking out more premium products and aspirational brands in the bottled water set… Read
• LIVE Beverages Founder: ‘Drinking vinegars are where kombucha was 4 years ago’: LIVE Beverages founder and CEO Trevor Ross sees great potential for the drinking vinegar category. He started the brand by launching a line of kombucha back in 2013, what he saw would “become a pretty crowded category.”.. Read
• The Dairy Aisle: La Colombe’s clever strategy to stand out in the crowded cold coffee category: Around 80% of La Colombe’s Draft Latte product is milk, so why not place it in the dairy section? That’s what ran through the mind of EVP of sales Kyle O’Brien, and retailers are going with it… Read
• Could molecular hydrogen infused water carve a niche in the functional beverages category?  In regular water, hydrogen is bound to oxygen (H2O) making it “difficult for our bodies to enjoy the [antioxidant/anti-inflammatory] benefits of hydrogen,” claims the company behind Hfactor, which contends that dissolving hydrogen gas into water via a patent-pending process enables Hfactor to deliver a variety of potential health benefits… Watch now
• Drinking vinegar could be the next kombucha if it can overcome four major hurdles: While most Americans remain unfamiliar with drinking vinegar, the category is gaining traction and could be the next kombucha if manufacturers work together to promote its many benefits and uses, according to one segment player. .. Read
• State bills call for warnings about risks associated with synthetic dyes & sugar-sweetened beverages
• Two California state senate bills would mandate controversial warnings on some foods and beverages, and if enacted could start a domino effect among other like-minded states, potentially creating a patchwork of laws and compliance headache for national brands… Read
• Packaging and sweeteners have most room for innovation, says Imbibe beverage expert: What does it mean to innovate in the beverage space? We speak with a beverage trends expert to find out more… Read
• Sparkling ICE unveils $37m ad campaign, queries soda tax inconsistencies: ‘It’s a mess’: Talking Rain Beverage Co has unveiled a $37m national ad campaign that president Kevin Klock says will give Sparkling ICE a stronger brand identity – something it has historically lacked, despite its meteoric growth (estimated retail sales have surged from around $10m in 2011 to well over $600m today)… Read
• Post Mexico’s sugar-sweetened beverage tax, purchases of levied beverages have fallen 7.6%, says study: Mexico’s sugar tax may have influenced beverage purchase decisions of Mexican households in urban areas, according to a follow up study by University of North Carolina Chapel Hill researchers… Read
• Plant-based water sales predicted to double by 2020: The trend for healthy hydration is driving growth in plant-based waters, with global sales growing 21% in 2016 to reach sales of more than $2.7bn… Read
• Ag Committee weighs whether SNAP should pay for sugary drinks: Prohibiting the purchase of sugar-sweetened beverages and other “unhealthy” foods and beverages with SNAP benefits, also known as food stamps, likely would not discourage their consumption, but would be costly and difficult for retailers to implement, industry stakeholders argued on Capitol Hill last week. .. Read
• Soup-To-Nuts Podcast: Countering the impact of climate change on coffee: Every year more people wake up to coffee or use it to fuel their day, but according to a comprehensive report recently published by the Climate Institute. this early morning ritual, and everything that goes into making it possible, face significant threats from climate change. .. Listen now

It’s a quiet news day so let’s enjoy one of Food-Navigator’s occasional special editions in which it collects articles on a specific topic, in this case sugar marketing trends in the Asia-Pacific region:

Special Edition: Asia-Pacific’s sugar fads

From breakthroughs in ingredients to lively debate over ways to keep consumers healthy, Asia-Pacific has gained a new confidence in its approach to sugar and sweeteners. We explore this spirited segment in a new FoodNavigator-Asia special edition.

• Groundbreaking natural low-GI sugar revealed, with Nobel link: Until not long ago, Holista CollTech was best known for being the only company to produce ovine collagen using patented extraction methods. Over the last year, though, the Malaysian-Australian biotech company has courted a number of headlines in quick succession, the most recent being that it will file for a patent for natural low-GI sugar that it is developing… Read
• Thailand’s sugar major looks at ways to capitalise on high prices: Thailand’s biggest sugar manufacturer has filed a legal application with financial regulators to raise money for the expansion of its core sugar business, with proceeds to be used to build the company’s first new sugar refining factory. .. Read
• Asia-Pacific sweetener market dynamics: Asia-Pacific stands out both as a region with high sweetener consumption and consistent growth. By 2019, the region is predicted to overtake declining Western Europe. .. Read
• The age of the soda tax: Moves in Asia-Pacific: Debate over sugar taxes hit the limelight last year, with the controversial topic grabbing headlines around the globe.  .. Read
• Ethnicity not found to affect GI beverage response in Asia: The glycaemic response (GR) to beverages does not vary depending on Asian ethnicity, with Chinese, Indian and Malay displaying similar responses, a first of its kind study has established… Read
• Severe obesity rockets in Korea: Younger people at greater risk: Cases of severe and extreme obesity have doubled in Korea over the past 12 years, with people in their 20s and 30s most likely to be piling on the pounds… Read
• Chinese sweetener prices rising at last after spate of plant closures: After a year-long race to the bottom by Chinese manufacturers, acesulfame-K sweetener prices have grown steadily since May, with analysts expecting further increases then stabilisation as suppliers, including segment giant Anhui Jinhe, hold back on production… Read