September 5, 2024

Exposing Industry Interference: Inside the 2024 Report on Sugar-Sweetened Beverage Taxes

Food and Nutrition

A revealing account of corporate maneuvering, the Global Health Advocacy Incubator (GHAI) report “Sweetened Profits: The Industry Playbook to Fight Sweetened Beverage Taxes” was launched today through a global webinar. The report spotlights the tactics employed by the beverage industry to derail public health measures meant to reduce the consumption of sweetened beverages (SBs).

As non-communicable diseases (NCDs) continue to rise globally, with a significant burden on low- and middle-income countries, the urgency for actionable policies continues to grow. SBs are a recognized factor contributing to obesity, diabetes and a slew of other health issues, underscoring the need for government intervention.

The report delineates five strategies the industry uses to protect their profits over public health with examples across the world:

Tailored Taxes: A push for tax designs that serve their interests, often at the cost of public health gains. In Vietnam, the European Chamber of Commerce lobbied for the exclusion of sugary milk products from taxation, products that are often marketed to children. In Ireland, PepsiCo pushed for the exclusion of sports drinks from the SB tax.
Legal Threats: Threats and legal actions against governments serve to intimidate and stall the implementation of SB taxes. Spain’s food and beverage industries managed to annul a tax on SBs through a procedural challenge, demonstrating the industry’s resolve to challenge governance.
Discredit Evidence: An effort to undermine scientific evidence that supports the efficacy of SB taxes. A lobby group representing Coca-Cola, PepsiCo, Red Bull, Dabur and Tetra Pak alleged that WHO guidelines are not scientifically rigorous or based on robust evidence. These multinational corporations questioned the evidence contained in WHO's guidelines on non-sugar sweeteners, which stated that ingredients such as aspartame and stevia do not assist in weight loss and can increase the risk of certain diseases.
Economic Fearmongering: Wield distorted/biased economic arguments to stigmatize SB taxes, claiming they would harm the economy and cost jobs. In Nigeria, the Manufacturers Association of Nigeria cautioned against a proposed SB tax, predicting job losses and factory closures. The Pakistani beverage industry warned the Federal Board of Revenue that a “sugar tax” would raise prices and hurt the $200 million worth of investments planned by two key carbonated soft drink companies.
Exploiting Vulnerabilities: Use concerns over the wellbeing of vulnerable populations to argue against the supposed regressive nature of SSB taxes. The industry in Indonesia leveraged environmental and social causes, with Nestlé launching donation programs and sustainability initiatives amidst discussions of an SB tax, attempting to align their corporate image with social good. The Joint Foreign Chambers urged the Philippine government to reconsider its plan to impose new taxes on “junk food” and higher taxes on SBs, arguing that middle- and lower-middle-class households are the main consumers of those products and would be negatively impacted by further taxes on them.

The GHAI report highlights the dichotomy between corporate interests and human rights, with the latter being compromised for the former. It also describes how each of these industry strategies impedes progress while distorting the public narrative on health.

GHAI also offers solutions for policymakers, advocates and civil society organizations to anticipate these tactics and reinforce the integrity of public health policies. The recommendations include implementing a robust technical tax design, preparing to defend taxes through legal defense, countering economic narratives and using evidence that is free of conflict of interest, among others.

Civil society organizations from Colombia, Nigeria and Pakistan participated in the global webinar where they shared their experiences with industry interference in SB tax campaigns in their countries.

Read the full report here.

Watch the webinar here:

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