Nov 25, 2025 (MarketLine via COMTEX) --
The Soft Drinks Industry Levy (SDIL) now includes milk-based and milk alternatives, which had previously been exempt.
The UK government has extended the sugar tax on soft drinks to include products like sugary milk-based drinks.
The Soft Drinks Industry Levy (SDIL), introduced in 2018 as an obesity measure, now includes milk-based and milk-substitute drinks, which had previously been exempt.
Back in April, the government had called for a consultation on proposals to widen the sugar tax on soft drinks and include milk-based drinks.
In a statement today (25 November), the government confirmed the levy would apply to manufacturers and importers of pre-packaged milk-based beverages and alternative milk drinks with added sugar.
These products include "supermarket milkshakes, flavoured milks, sweetened, yoghurt drinks, chocolate milk drinks, and ready-to-drink coffees".
Alongside news of the expanded levy, the government also announced a cut to the threshold of the sugar tax from 5.g to 4.5g of sugar per 100ml. "This means more high-sugar drinks will fall under the levy unless manufacturers reduce sugar", it said.
Lowering the threshold to 4.5g instead of the originally proposed 4g, it added, "strikes the appropriate balance between supporting health objectives and fostering conditions that allow the soft drink industry to continue to grow and invest".
So-called open-cup milkshakes made and sold in cafes and bars will not be affected by the tax, nor will plain cow's milk or other milk drinks free from added sugar. Milk alternatives without added sugar are also exempt.
Businesses have until January 2028 to lower sugar quantities in their drinks.
The move has been praised by many health advocacy groups.
Katharine Jenner, executive director, Obesity Health Alliance, said: aEURoeEnding the exemption for sugary milkshakes and bringing more sugary soft drinks into the levy is a sensible and long-overdue step to protect childrenaEUR(TM)s health - especially their teeth.A
"The Soft Drinks Industry Levy has already removed billions of teaspoons of sugar from the nationaEUR(TM)s diet without harming industry growth, proving that clear, consistent rules are effective."
Dr Charmaine Griffiths, chief executive of the British Heart Foundation, added: aEURoeThe more sugar cut from drinks on supermarket shelves, the better, so extending the levy to include sugary milk-based drinks is the right thing to do.
"The current levy has been extremely effective at incentivising manufacturers to reduce sugar levels in soft drinks, and evidence has shown free sugar consumption in children and adults has decreased."
http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall
not be liable for errors or delays in the content, or for any actions
taken in reliance thereon
COMTEX_470541640/2227/2025-11-25T16:04:15
Copyright (C) 2025 Datamonitor. All rights reserved
