Tesco and Asda Urge Beverage Makers to Cut Sugar

The ask comes as a preemptive move to keep the government from regulating sugary beverages.

May 14, 2013

CRAWLEY, ENGLAND – British grocer Tesco has called on its beverage suppliers to reduce sugar levels in its products, The Grocer reports.

The plea comes as a preemptive move for government regulation of sugary beverages. In the meantime, Tesco will increase the percentage of sugar-free drinks it sells from 49% to 55% by the end of this year. It will also launch two new lines — More Drinks and Little More — across more than 500 of its stores beginning June 24.

“We see this [category review] not just as a way to avoid regulation, but as a potentially exciting growth area for the industry,” said Tesco soft drinks buying manager David Beardmore. “The soft drinks industry has to be more collaborative and self-regulate before we are regulated against.”

More Drinks includes four products with added vitamin B, C, D or multivitamins. A Little More, a line for children, will offer three varieties with added vitamin C or D, or multivitamins. And the private-label npd follows the launch of a ‘3-a-day’ smoothie earlier this month. 

“Having Tesco behind this is a huge breakthrough,” said Steve Norris, founder of the More or Less Drinks Company, which is producing the new range.

“With the best will in the world, a company like Coca-Cola, which has a very good vitamin water product, is going to be limited in how far it goes down that road because how does that sit with its core product, Coca-Cola?” 

Nichols, which produces the drink Vimto, is working with Tesco on producing reduced sugar products. “We are working with Tesco and they are walking the walk as well as talking the talk on this,” said Marnie Millard, CEO of Nichols. 

Asda has also called for action among beverage suppliers to produce drinks with reduced sugar levels.

“Why are we still seeing kids’ lunchbox items with extra sugar in, why aren’t we taking it out?” asked Steve Newbould, Asda soft drinks manager. “The lunchbox offer doesn’t meet our customers’ needs.”

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