Negative public opinion and taxes relating to sugar usage are on the way and food and beverage companies should prepare now, according to a new study from Credit Suisse Research Institute.
According to the study Sugar: Consumption at a Crossroads, the potential for a surge in negative public opinion and the looming threat of regulation and taxation relating to sugar use are issues the food and beverage industry must tackle.
"To help fund the growing health costs associated with excess sugar consumption while reducing daily sugar intake, we believe taxation is an option that may soon be tested in some countries," Stefano Natella, head of global equity research at Credit Suisse and one of the authors of the study, said.
The authors are calling on companies to diversify into healthier products, which they point out has already been occurring in the beverages space.
The authors note, however, that people who favour diet soft drinks over the full-calorie versions are often those with higher incomes and educations.
In addition, many of these alternative products are coming under scrutiny; either as sugar in a healthier guise (fruit juices) or for the inferred detriments of artificial sweeteners.
Credit Suisse has also estimated that 43 percent of added sugars in consumers diets come from sweetened beverages.
Credit Suisse says that although a major consumer shift away from added sugar may be some years away, and outright taxation and regulation a delicate process, a trend is now developing.
"From the expansion of 'high intensity' natural sweeteners to an increase in social responsibility messages from beverage manufacturers, we see green shoots for dietary changes and social health advancement," Natella says.
