HEALTH PROMOTION
Sugar tax effect smaller than thought, says Pioneer Foods
The health promotion levy, or sugar tax, will not be as negative for beverage producers as has been initially expected, Pioneer Foods says in its latest integrated report for 2017. While the levy was expected to "add materially to the costs of certain products", Pioneer said "the impact will be considerably smaller than initially mooted". The tax is due to come into effect in April 2018 and will apply to sweetened beverages based on their sugar content. Unsweetened pure fruit juices will be excluded. Pioneer, the brands of which include Ceres, Liqui-Fruit and Fruitree, said the levy would apply to about 45% of its beverage portfolio. The group was taking measures to mitigate the effects thereof. "Beverage reformulation, including innovation centred on reduced-sugar products, is far advanced, and already completed in most key categories." For instance, Pioneer said the Lipton iced tea brand, which it bottles and sells as part of a joint venture agreement, was recently reformulated "t...
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