The Impact of the Sugar Tax on the Import and Consumption of Coca-Cola in the United Kingdom

The UK Sugar Tax – Impact on the Import, Pricing and Consumption of Coca-Cola

The introduction of the sugar tax (Soft Drinks Industry Levy, SDIL) in the United Kingdom in 2018 had far-reaching consequences for the sweetened drinks market, including Coca-Cola. This regulation affected pricing strategies, consumer preferences and importers' practices. Below we set out the key aspects of this tax and its impact on international trade.

1. What Is the Sugar Tax?

The SDIL covers sweetened drinks, and its rate depends on sugar content:

• 20.8 pence per litre (rate from 1 April 2026; previously 19.4 pence from 1 April 2025) for drinks containing 5–8g of sugar per 100ml.
• 27.8 pence per litre (rate from 1 April 2026; previously 25.9 pence from 1 April 2025) for drinks containing more than 8g of sugar per 100ml.

Coca-Cola Classic (10.6g of sugar per 100ml) is subject to the higher rate, which affects its final price.

2. Impact on Coca-Cola Imports

Trade between the EU and the United Kingdom is governed by the Trade and Cooperation Agreement (TCA), which allows for duty-free import provided the rules of origin are met.
Key issues for importers:

• The SDIL is independent of the country of origin and applies to every batch of sweetened drinks placed on the UK market.
• VAT (20%) is charged on the CIF value (goods, transport, insurance) plus the SDIL.

3. Changes in the Price of Coca-Cola

The sugar tax significantly increased the price of products such as Coca-Cola Classic. In response, the company introduced innovations:

• Coca-Cola Zero Sugar: The sugar-free alternative has grown in popularity, as it is not subject to the tax.
• Smaller packaging: Reducing can and bottle sizes (e.g. 250ml) helps reduce the tax's impact on the final product price.

4. Consumption and Manufacturer Strategies

The tax has encouraged consumers to choose lower-sugar drinks, forcing manufacturers to adapt their strategies:

• Reformulating recipes: Reducing the sugar content of some drinks to avoid higher tax rates.
• Promoting healthier alternatives: Focusing on Coca-Cola Zero Sugar and other sugar-free products.

5. Regulatory Requirements for Importers

Importers must meet certain requirements to place products on the UK market:

• Labelling: Information on ingredients and nutritional values must comply with UK rules and be provided in English.
• Documentation:
  • Commercial invoice.
  • Statement of origin (for TCA preferential duty rates).
  • Health certificates, if required.

6. Impact on Public Health

The introduction of the tax had positive social effects:

• A reduction in consumption of high-sugar drinks of around 30% in the first years the tax was in force.
• An increase in sales of sugar-free drinks: Coca-Cola Zero Sugar became the leader in its segment.

The UK sugar tax has affected importers' strategies, prices and consumer preferences. Importers need to factor the SDIL into their calculations and adapt products to UK market requirements. The regulation has also contributed to improving public health by promoting healthier alternatives.

Wondering how the sugar tax will affect your drinks imports into the United Kingdom? Get in touch! As a professional customs agency, we can help you:

• Complete customs clearance without errors.
• Minimise the impact of taxes on your final costs.
• Adapt your documentation to UK legal and tax requirements.

Get peace of mind and professional support at every stage of importing!

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• Email: info@agencjacelna.uk

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