Soda tax debate expands in France

A proposal to extend the "soda tax" to sugary pre-packaged products has sparked significant debate in France, with food industry lobbies opposing the measure while some advocate for it as a necessary health intervention. The measure, discussed starting Tuesday at the National Assembly, would apply to products such as pastries, desserts, ice creams, biscuits, industrial cakes, cereals, candies, and chocolate products.

Industry groups oppose the tax

The National Association of Food Industries (Ania) has protested against the tax, calling it an "inevitable disaster" that would "directly impact the purchasing power of the French" and a "death sentence" for certain agri-food companies. A member of the Inside Track collective, which includes senior executives from major industrial groups, described the position as "completely predictable," noting the weak margins and chronic lack of investment in the French agri-industry, which has been strained by drought.

Industry concerns about reformulation

The Inside Track member also pointed out that manufacturers tend to add sugar and flavor enhancers to replace other ingredients, especially in cheaper products. Deputies of the Social Affairs committee have proposed extending the tax beyond sugary products to include salty dishes containing sugar. Another member of Inside Track highlighted that the constraint could be a source of innovation, applauding the criteria on additives and sweeteners in the tax.

Support from some agri-food companies

Some actors, including organic agri-food companies, have publicly supported the tax. Synabio, however, requested better targeting, particularly on added sugars, to avoid penalizing small companies. Deputies have proposed in committee not to tax these small companies or artisans.

Economist highlights industry dynamics

Céline Bonnet, an economist at Inrae, noted that small actors are often those who make efforts, while large manufacturers "do not move without strong financial obligations" out of fear of losing market shares. She referenced sector agreements on common trajectories for reducing sugar, salt, or fat, promoted by the Minister of Agriculture and Agri-Food Annie Genevard (LR), who prefers these agreements to taxes, as does the right in Parliament.

Political and economic tensions

Sandrine Runel (PS) reported receiving many messages and pressure from certain companies. Bonnet noted that the opposition from industry is impressive in comparison to the impact of the tax, which would currently bring in 300 million euros and would be "passed on" to consumers, "as was the soda tax" at the rate of a few cents per bag of candy, packet of biscuits or dessert cream. This is even in a context of tense negotiations with retailers and constrained purchasing power.