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Has the sugar levy prompted healthier consumers?

Has the sugar levy prompted healthier consumers?

UK head of consumer markets at KPMG, Linda Ellett comments on the 1-year anniversary of the sugar levy coming into force.


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Commenting on the 1-year anniversary of the sugar levy coming into force, Linda Ellett, UK head of consumer markets at KPMG, said:

“There was once a time when there was nothing more innocent that saying you had a sweet tooth – after all, celebrations are invariably accompanied by cake, and treats invariably mean sweets. But times are changing, especially in light of the introduction of the sugar levy a year ago this week.

“Consumers have grappled with making treats less frequent, whilst those producing sweet products have come are under increasing pressure to stop consumers over indulging. Soft drinks companies have been on the front line, especially in light of the sugar levy’s introduction. Many have deliberated long and hard about whether to reformulate their traditional recipes, while others have used the opportunity to diversify their product range with health-conscious consumers firmly in mind.

“Our recent mergers and acquisition analysis* highlights an increasing trend in consumer businesses venturing into the healthier eating, sustainable consumption and ethically sourced space. Whilst it is vital that such businesses now consider health in their offerings, it is consumption that drives growth. The feasibility of healthy options relies largely on popularity with consumers, so the proof must be in the healthier pudding.”


Note to editors:

*KPMG’s 2019 consumer and retail M&A trends report – The race for game-changing transformation and strategic growth – can be accessed: here.

About KPMG in the UK

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 16,300 partners and staff. The UK firm recorded a revenue of £2.338 billion in the year ended 30 September 2018. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and has 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

© 2020 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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