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Soft Drink Sales In Portugal Down 25% Following Sugar Tax

Portugal’s Ministry of Health has calculated that the tax on high-sugar beverages, introduced in February, has reduced soft drink sales by 25%.

The Deputy Secretary of State and Health, Fernando Araújo, told Jornal de Negocios that in February high-sugar beverages accounted for 45% of total soft drink sales, while those with lower sugar content accounted for 55%. After the tax was introduced, however, there was a large shift in consumption, with high-sugar drinks accounting for only 27% of sales in July.

He added that new limits will be introduced to stimulate the industry to further cut the sugar content in beverages.

Sugar Tax

Portugal's soft drinks tax yielded €46.7 million in the first six months of collection, according to figures released by the Government, which forecasts that revenue at end of the year will reach about €80 million.

Beverages with less than 80 grams of sugar per litre pay a €0.027 fee per 33 cl can, while those above 80 grams pay €0.055 per can.

The introduction of the tax has also led producers, such as Sumol, to change their formulas, while Coca-Cola has adapted its advertising campaigns, placing a greater promotional effort on its sugar-free variety, Coca-Cola Zero.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine

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