More than 300 companies from Germany's beverage industry have signed a joint open letter opposing a sugar tax planned by the government, warning of an "additional burden" on both businesses and consumers. The signatories argue that "there is no evidence" the tax would actually be effective, and point out that the industry has already voluntarily cut the sugar content of major soft drink brands by around 15 percent since 2018.
The open letter was signed by fruit juice producers, breweries and mineral water companies from across Germany. The signatories stress that the beverage industry is overwhelmingly made up of small and medium-sized businesses, meaning new costs would hit a sector with limited capacity to absorb them.
According to the letter, a sugar tax would amount to a "far-reaching state intervention" with "significant economic consequences" for companies. The signatories note that the industry has already faced heavy strain in recent years from rising energy, logistics, packaging and labour costs, compounded more recently by weak consumer spending. Additional burdens, they warn, would hit "many companies" hard.
The companies further argue that studies supporting a sugar tax rely "largely on model calculations" that merely "assume" an effect rather than "prove" one. They point to Robert Koch Institute research showing that consumption of sugary soft drinks among children and adolescents has declined in recent years.
The letter also challenges the government's projected revenue from the levy, arguing the figures put forward by supporters of the tax appear "significantly overestimated" and that the "inevitable costs of collecting it have been underestimated". It states that the "substantial extra workload" involved in monitoring and recording sugar content has been "completely overlooked".
For ordinary citizens, the companies argue, the tax would mean higher spending, with low-income households hit hardest. "The rise in price levels would likely lead to further state interventions, for example in recalculating social transfer payments that need to be increased," the letter states. Ultimately, it adds, these costs would be borne by all consumers.
As part of its health insurance reform, the German government is planning a levy on sugar-sweetened beverages starting in 2028, with annual revenue estimated at 450 million euros. According to the draft legislation, the proceeds are meant to provide "appropriate relief" for the statutory health insurance system. The Bundestag is due to vote on the reform on 10 July.
A spokeswoman for the Health Ministry said on Friday that talks with the relevant government departments on the sugar levy were still ongoing.
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