Supermarket on lemonade tax: Consumer choices are already changing
Retailers say consumers' habits are changing and becoming increasingly health-conscious, even before the government introduces its new tax on sugary drinks in 2026.
At COOP Eesti, the sale of sweetened soft drinks has decreased by 7 percent on-year, while the sales of sugar-free drinks have increased by 22 percent. Purchasing director Oliver Rist said consumer preferences are clearly changing.
"Consumers are more health-conscious. It's not just about sugar. We are also seeing a reduction in the salt content of salty products. The producer is moving to where the consumer is going," Rist told Wednesday's "Aktuaalne kaamera".
Saku Brewery's product portfolio includes both soft drinks and juices. Under the next tax, a bottle of Kali will rise by 75 percent, said Company manager Jaan Härms. This is bound to affect sales. However, he believes sales of healthier vitamin drinks will increase.
"In the last eight years, we have reduced the sugar content in our drinks by more than 20 percent," Härms said.
"There are also some beverage categories where it has already been taken to the point where consumers will no longer accept it. In our vitamin water range, there was one product where we took the sugar down to a very low level and it was no longer a taste that consumers would have been happy to buy and it had to be discontinued in that form unfortunately," he added.
The introduction of the tax has already been delayed from 2025 to 2026 as the electronic declaration system will not be completed by next year. Minister of Health Riina Sikkut (SDE) said the tax will not change.
The tax is expected to generate €25 million in its first year, but the amount will decrease over time.
"€25 million is the revenue forecast for the first year, but I hope that there will be a reduction in tax revenue thereafter. If consumption goes down, so will tax revenue.," said Sikkut.
Next year's state budget is forecast to be in deficit, and potentially larger than the EU rules allow. Far more than €25 million is needed to patch the hole.
"Of course, this is not enough to cover budget needs. It is one step towards higher fixed revenues for the country. But this fundamental concern of staying within the agreed budgetary rules will have to be addressed by other decisions," the minister said.
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Editor: Merili Nael, Helen Wright
Source: Aktuaalne kaamera
