Danone boss calls for higher taxes on unhealthy food

1 year ago 25

Danone yoghurts successful  Nice, FranceImage source, Reuters

By Lucy Hooker

Business reporter, BBC News

The brag of 1 of the UK's biggest nutrient firms is calling for higher taxes connected salty, fatty and sugary foods.

Food producers had not "shown capable appetite to change", said James Mayer, who runs Danone successful the UK and Irish Republic.

The French steadfast is champion known for its yoghurt brands, but besides owns bottled h2o brands Evian and Volvic.

He said lone 10% of Danone's ain products would beryllium affected by what person been dubbed "sin" taxes.

"The UK nutrient industry's efforts to amended the wellness illustration of its products person not moved accelerated enough," Mr Mayer said successful comments archetypal shared with the Observer newspaper.

He said it was clip for "meaningful intervention" by the government.

"We spot this arsenic the lone mode manufacture arsenic a full volition beryllium incentivised to determination towards healthier, much sustainable products implicit the often cheaper but unhealthy alternatives," Mr Mayer said.

The UK introduced a "sugar tax" connected brushed drinks successful 2018, but has rejected much caller proposals to enactment other taxes connected different unhealthy products, relying alternatively connected manufacturers to prosecute with voluntary programmes to trim salt, abdominous and sugar.

The steep emergence successful the outgo of nutrient implicit the past twelvemonth makes it a hard clip to reason for higher taxes.

But Mr Mayer said the caller attack should see restrictions connected advertizing arsenic good arsenic "looking astatine however VAT rates tin beryllium aligned to the wellness credentials of products".

Currently VAT, a income tax, is not charged connected astir nutrient products, but the modular 20% VAT complaint is applied to alcoholic drinks, confectionery, galore crisps and savoury snacks, crystal pick and brushed drinks.

Mineral water, which makes up a important portion of Danone's merchandise portfolio, is besides taxable to VAT.

The nutrient manufacture has antecedently lobbied against further taxes, arguing it would propulsion up prices. However campaigners successful favour of the strategy reason that taxation revenues could beryllium utilized to beforehand healthier eating patterns.

A Department of Health and Social Care spokesperson said the authorities had taken "firm action" to tackle unhealthy foods, and would proceed to enactment intimately with industry.

"Our sweetener simplification programme has delivered melodramatic reductions successful the magnitude of sweetener successful foods eaten by children - including a 14.9% alteration successful the sweetener contented of meal cereals and a 13.5% simplification successful the sweetener contented of yogurts and fromage frais," the spokesperson said successful a statement.

The authorities introduced restrictions precocious past twelvemonth connected wherever unhealthy foods tin beryllium displayed successful shops, but delayed new limits connected "volume" offers specified arsenic buy-one-get-one-free, until autumn this year.

A prohibition connected TV advertizing of junk nutrient earlier 21:00 has been pushed backmost to October 2025 to springiness the manufacture much clip to hole for the restrictions.

Henry Dimbleby, co-founder of the Leon fast-food chain, appointed arsenic the government's steadfast eating "tsar", resigned earlier this year, criticising the deficiency of progress.

His study past year, which recommended measures including taxes connected brackish and sweetener utilized successful processed food, with the revenues utilized to supply caller effect and vegetables to low-income families, was not taken up by the government.

Mr Mayer said Danone UK & Ireland had committed to support 90% of its scope of products beneath the threshold that counts arsenic precocious successful fat, brackish and sugar, and would not motorboat immoderate caller products marketed astatine children that were successful that category.

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