The head of one of the largest food companies in the UK is advocating for higher taxes on salty, fatty, and sugary foods.
According to James Mayer, who oversees Danone in the UK and Irish Republic, food producers had not "shown enough appetite to change.".
The French company owns the bottled water brands Evian and Volvic in addition to its well-known yoghurt brands.
He claimed that only 10% of Danone's own products would be impacted by the so-called "sin" taxes.
In remarks first revealed to the Observer newspaper, Mr. Mayer claimed that the UK food industry's efforts to raise the health profile of its products had not advanced quickly enough.
He declared that "meaningful intervention" by the government was necessary.
We believe that this is the only way to encourage the industry as a whole to switch from frequently less expensive but unhealthy substitutes to healthier, more sustainable products, according to Mr. Mayer.
The UK implemented a "sugar tax" on soft drinks in 2018, but more recent proposals to impose additional taxes on other unhealthy products were rejected. Instead, the UK has relied on manufacturers to participate in voluntary programs to reduce salt, fat, and sugar.
It's hard to justify higher taxes right now given the sharp increase in food prices over the past year.
Mr. Mayer, however, argued that the new strategy should also "look at how VAT rates can be aligned to the health credentials of products" in addition to advertising restrictions.
Most food items are currently exempt from VAT, a sales tax, but alcohol, confections, many crisps and savoury snacks, ice cream, and soft drinks are subject to the standard 20 percent VAT rate.
Additionally subject to VAT is mineral water, which makes up a sizeable portion of Danone's product line.
The food industry has lobbied against additional taxes in the past, claiming that they would raise prices. However, proponents of the plan contend that tax money could be used to encourage better eating habits.
The government has taken "firm action" to address the issue of unhealthy foods, according to a spokesperson for the Department of Health and Social Care, and will keep up its close collaboration with business.
"Our sugar reduction program has delivered dramatic reductions in the amount of sugar in foods consumed by children," the spokesperson said in a statement. "This includes a 14.9 percent decrease in the sugar content of breakfast cereals and a 13.5 percent reduction in the sugar content of yogurts and fromage frais.".
Late last year, the government imposed restrictions on where unhealthy foods could be displayed in stores, but it didn't implement new restrictions on "volume" offers like buy one, get one free until this fall.
To give the industry more time to prepare for the restrictions, a ban on junk food TV advertising before 21:00 has been postponed until October 2025.
Henry Dimbleby, a co-founder of the Leon fast food chain and the government's "tsar" for healthy eating, resigned earlier this year in protest at the lack of development.
The government did not enact the recommendations in his report from the previous year, which included taxes on the salt and sugar found in processed foods, with the proceeds going toward giving low-income families access to fresh fruit and vegetables.
Mr. Mayer stated that Danone UK and Ireland had committed to keep 90% of its product line below the limit that qualifies as high in fat, salt, and sugar and would not introduce any new products marketed toward children that were in that category.
