TL;DR: UK Expands Sugar Tax to Milk-Based Drinks for Public Health Benefits
From 2028, the UK will extend its sugar tax to high-sugar milk-based drinks like milkshakes, lattes, and sweetened plant-based alternatives to combat obesity and reduce sugar consumption.
• Tax targets bottled and packaged sugary milk drinks, excluding plain milk and unsweetened alternatives.
• Consumers may face higher prices or reformulated recipes with reduced sugar content.
• The policy is expected to help curb daily sugar intake and improve public health.
Actionable Tip: Opt for unsweetened or freshly prepared drinks and check labels to make healthier choices.
Milkshakes and lattes are more than indulgent beverages, they’re the latest targets in the UK government’s renewed push for healthier diets. Starting in 2028, the UK’s sugar tax will extend to milk-based drinks containing added sugar, a decision aimed at addressing obesity and public health challenges. Here’s everything health-focused diners, families, and food enthusiasts need to know about this groundbreaking policy shift.
What Is the Sugar Tax and Why Was It Created?
The sugar tax, officially known as the Soft Drinks Industry Levy (SDIL), was implemented in 2018. It was introduced to cut sugar from everyday diets by financially incentivizing manufacturers to reduce added sugars in beverages. Originally, it targeted fizzy drinks with more than 5g of sugar per 100ml, such as sodas and energy drinks.
Since its introduction, remarkable progress has been made: 46% less sugar is now found in taxed soft drinks, and nearly 90% of products have been reformulated to meet lower sugar standards. Yet, sugary milk-based drinks have remained untouched. This exemption, based on their calcium content, has now been deemed outdated as consumption trends push sugary milkshakes, iced lattes, and yogurts into the mainstream.
Why this matters: Many milk-based drinks rival or exceed the sugar levels of sweetened sodas, often hidden behind their reputation as a “nutritious” pick. The extension of the sugar tax pivots toward addressing these concealed culprits.
Which Drinks Will the Tax Cover?
From January 1, 2028, the sugar tax will include:
- Milk-based drinks like bottled milkshakes, pre-packed lattes, and iced coffees.
- Plant-based alternatives (e.g., soy, almond, or oat drinks) if they’re sweetened.
- Fermented milk beverages such as lassis, kefirs, and yogurt drinks with added sugars.
There are a few notable exceptions:
- Plain milk and unsweetened plant-based alternatives remain exempt.
- Drinks prepared on-site (think freshly made barista coffees) won’t be taxed yet.
- Meal replacement beverages and alcohol-free variants are also excluded.
- A “lactose allowance” will account for naturally occurring sugars in dairy to differentiate between added sweeteners and intrinsic sugars.
This means that while your bottled chocolate milk may get pricier, your local café latte will likely remain unaffected, for now.
How Will This Change Impact Health and Obesity Rates?
The UK has alarming obesity statistics: nearly 63% of adults and 1 in 4 children aged 10, 11 are classified as overweight or obese. Excess sugar consumption is a key contributor. Popular beverages like bottled milkshakes can deliver a massive sugar hit of over 30g in just one serving, the equivalent of seven sugar cubes.
Although the sugar tax is sometimes criticized for being a “nanny state” measure, it has delivered undeniable health outcomes. Research shows reduced calorie intakes not only lead to fewer diet-related diseases but also lessen the financial burden on health services such as the NHS. Government officials predict this extension will help curb daily sugar intake by 17 million calories per day nationwide.
For health-conscious diners, such policies also encourage industry reformulations, resulting in better options on store shelves. This is good news for those trying to improve their longevity and metabolic health.
What Does This Mean for Consumers?
Once implemented, the sugar tax is expected to increase the prices of high-sugar milk-based drinks. Bottles or cartons containing more than 4.5g of sugar per 100ml will be subject to either:
- A lower tax rate for drinks with 4.5 to 8g of sugar/100ml.
- A higher tax rate for those exceeding 8g of sugar/100ml.
For manufacturers, these added costs will either be passed on to consumers via higher prices or motivate a reformulation push to lower sugar and avoid taxation altogether. Brands like Coca-Cola and Lucozade have already demonstrated reformulation’s potential, though not without controversy around taste changes.
If your go-to is a strawberry milkshake or vanilla latte, prepare for tweaks to recipes, or a larger dent in your wallet.
How Can Restaurant Diners and Health-Conscious Consumers Adapt?
With rising public awareness, more people are making intentional choices about their calorie and sugar intake. Here are practical tips to navigate these changes:
1. Be Label Savvy
Check product ingredients for hidden sugars. Terms like “glucose,” “sucrose,” and even “fruit concentrate” may indicate added sugars that contribute to the levy. The reformulation trend might also make healthier swaps more available.
2. Focus on Fresh Options
Diners often have more control over sugar content at restaurants or cafes where drinks are prepared fresh. Communicate preferences, request unsweetened variations or inquire about sugar content.
3. Leverage Dining Tools
Explore platforms such as MELA AI to find restaurant options that cater to healthy dining. Many establishments have turned to reducing sugar or customizing nutrient-friendly meals to attract health-savvy patrons.
What’s Next for the Beverage Industry?
Expect reformulation and innovation. In addition to lowering sugar levels, manufacturers could look to natural sweeteners like stevia or monk fruit, which don’t fall under the sugar tax. Plant-based beverage producers might also pivot toward unsweetened or functional drinks to maintain pricing competitiveness.
The tax might also lead to greater transparency in labeling, with brands showcasing “sugar-tax exempt” products as selling points. In turn, this allows for more informed consumer choices.
The Role of Government Policy in Healthier Habits
Sugar taxation stems from a broader trend of governments getting serious about the links between diet and health crises. The idea isn’t to restrict; it’s to nudge both companies and individuals toward better practices. Similar initiatives across the globe, including in South Africa and Portugal, have proven successful, demonstrating calorie reductions without harming beverage sales significantly.
Call to Action for Consumers: The next time you’re stocking up on drinks or indulging in your favorite café treat, ask: “How much sugar am I consuming today?” It’s a simple yet impactful awareness shift. Exploring healthier, reformulated options can align with not just the latest policies but also your wellness goals.
For more suggestions on dining the healthy way, browse MELA AI or uncover a variety of cuisines tailored to your nutritional preferences with MELA Cuisines. Make every meal part of your path to health.
FAQ for Sugar Tax Extension to Milk-Based Drinks
Why is the UK extending its sugar tax to milk-based drinks?
The UK government is expanding the sugar tax to milk-based drinks starting in January 2028 to address rising obesity rates and overall public health concerns. Initially, milk-based drinks were exempt due to their calcium content, but many of these drinks now rival or exceed the sugar levels of traditional sodas. With nearly 63% of adults classified as overweight or obese and 1 in 4 children affected by obesity, the government aims to curb sugar consumption and promote healthier choices. Drinks like milkshakes and flavored lattes can contain over 30g of sugar per serving, the equivalent of seven sugar cubes, making them surprising contributors to poor diets. Research from the original sugar tax shows reduced intake of calories nationwide, so extending this strategy to milk-based drinks holds significant promise for improving public health outcomes.
How will the sugar tax impact milk-based beverage prices?
The sugar tax is likely to increase prices for milk-based drinks with added sugar. Beverages containing more than 4.5g of sugar per 100ml will be taxed either at a lower rate (for those containing 4.5-8g of sugar/100ml) or a higher rate (for those exceeding 8g/100ml). Manufacturers may either pass these additional costs to consumers, resulting in pricier milkshakes and iced coffees, or reformulate their products to meet lower sugar thresholds. Companies like Coca-Cola and Lucozade have already demonstrated successful reformulation efforts to avoid higher taxes, so similar changes may be expected in the milk-based drink industry. Health-conscious diners can anticipate options with reduced sugar content on store shelves, although recipe changes may slightly alter taste profiles over time.
What drinks will be included in the tax, and are there exceptions?
The sugar tax will cover pre-packed milk-based drinks like bottled milkshakes, flavored lattes, and iced coffees, as well as sweetened plant-based alternatives such as soy, almond, or oat milk. Other fermented milk drinks like yogurt beverages, lassis, and kefirs with added sugar will also be taxed. However, several exceptions apply: plain milk, unsweetened plant-based drinks, freshly prepared beverages at restaurants, meal replacement drinks, and alcohol-free products are exempt. Additionally, naturally occurring sugars in dairy will be excluded from the tax thanks to a “lactose allowance.” Diners can expect store-bought chocolate milk and other packaged beverages to become pricier starting in 2028, but fresh drinks from cafes are unaffected, for now.
How can I identify healthier beverage options when dining out?
Understanding sugar content and ingredient labels is crucial when choosing healthier beverages. Look for clear labeling of sugar levels, identify products with less than 4.5g of sugar per 100ml, and opt for unsweetened alternatives where possible. Dining platforms like MELA AI make it even easier to locate restaurants committed to health-conscious options. MELA AI collaborates with restaurants to highlight sugar-free and nutrient-rich drinks on their menus. Whether you’re visiting a café for a fresh latte or shopping for bottled beverages, these tools empower diners to make informed, healthier choices without compromising on taste or variety.
Will this policy change significantly reduce obesity rates?
Experts predict that extending the sugar tax to milk-based drinks will contribute to substantial reductions in daily calorie intake, with estimates suggesting a nationwide decrease of 17 million calories per day. Since sugary drinks are a leading contributor to excess sugar consumption, targeting hidden sources, such as milk-based drinks with a “nutritious” reputation, could be impactful. Although policies like the sugar tax are sometimes criticized for limiting consumer choices, research indicates that they effectively encourage reformulation and healthier consumer habits. For families aiming to promote better eating behaviors, these changes can serve as a valuable nudge toward lower-sugar alternatives, supporting long-term benefits for longevity and metabolic health.
How can restaurant owners adapt to these upcoming regulations?
Restaurants serving pre-packaged milk-based drinks should start planning for sugar tax compliance now. Reformulating recipes to lower sugar levels or emphasizing fresh-made alternatives can help businesses avoid financial penalties associated with the tax. Owners can also explore opportunities with MELA AI, a platform that supports transparency in menus and promotes healthy dining establishments through its prestigious MELA sticker. By offering nutrient-conscious beverages and leveraging tools like MELA AI, restaurants can attract customers who value nutrition while positioning themselves as leaders in health-focused dining innovations, a growing trend among diners in Malta and beyond.
What can diners do to enjoy milk-based drinks without exceeding sugar limits?
Diners can take simple steps to enjoy their favorite milk-based drinks without consuming excessive sugar. Opt for unsweetened versions or customize orders at cafes to reduce sweetener additions. For grocery purchases, read labels carefully and prioritize products that meet the 4.5g sugar threshold outlined in the sugar tax. Platforms like MELA AI can guide diners toward healthier choices by showcasing Malta’s restaurants that prioritize nutritious drinks on their menus. These establishments often offer alternatives like zero-sugar milkshakes, low-sugar iced coffees, or plant-based choices suitable for varying health goals.
How will the industry innovate in response to the sugar tax extension?
Manufacturers are expected to prioritize reformulation and transparency as the sugar tax extends to milk-based drinks. Natural sweeteners like stevia or monk fruit will likely play a larger role in recipes, as they aren’t classified as added sugars under tax guidelines. Some brands may also introduce entirely new product lines featuring unsweetened or low-sugar options to cater to health-conscious consumers while avoiding tax penalties. For diners, this means improved beverage choices on store shelves and clearer labeling of sugar content. Customers can stay informed about these innovations by keeping an eye on platforms like MELA AI, which showcases restaurants and suppliers committed to these healthier practices.
How has the existing sugar tax impacted beverage reformulation?
Since its introduction in 2018, the UK’s sugar tax has yielded significant results. Over 46% less sugar is found in taxed soft drinks, while nearly 90% of products have been reformulated to avoid penalties. This success has encouraged industries to innovate further by implementing healthier practices without sacrificing taste. Expanding the tax to milk-based drinks accelerates this trend, placing pressure on producers to deliver flavorful options while reducing added sugar content. As awareness about sugar-related health risks grows, platforms like MELA AI help restaurants and cafes stay competitive by highlighting their commitment to wholesome, reformulated menu items in Malta and Gozo.
Are there other international examples of sugar taxes?
Yes, sugar taxes are gaining popularity worldwide. Countries like South Africa and Portugal have implemented similar levies with strong public health results. In Portugal, reformulated sugary beverages have reduced calorie counts while maintaining steady sales. South Africa’s strategy is notable for its focus on both sugar reductions and consumer education about healthier alternatives. These examples demonstrate that sugar taxes can nudge manufacturers, retailers, and consumers toward positive dietary changes without significant economic disruption. Learning from these global successes, the UK hopes its sugar tax expansion will achieve similar health milestones, particularly as awareness about hidden sugar sources grows.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp’s expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
