More than 300 companies across Germany’s beverage sector have signed a joint open letter opposing the German government’s planned introduction of a sugar tax on drinks.

The signatory companies – spanning from breweries and bottling companies to soft drinks, juice and water producers – include Coca-Cola, Red Bull, Capri Sun and Carlsberg among others.  

In the letter, the companies support the position of the German Association of Non-Alcoholic Beverages (WAFG), the Association of German Mineral Water Producers (VDM), the Association of the German Fruit Juice Industry (VDF), the German Brewers Association (DBB) and the Private Breweries Association of Germany.

This position asserts that the federal government and Bundestag's planned sugar tax, proposed for implementation in 2028, would significantly impact businesses across the sector as well as end consumers. In particular, the letter raises concerns about the burden on small and medium-sized enterprises, including family-owned local businesses.

With economic instability already taking its toll on businesses in the form of rising energy, logistics, packaging and raw material costs, the letter emphasises that introducing an additional levy would bring consequences for the industry, further adding to the strain.

The signatories note that it would also disproportionately affect low-income households and reduce consumer purchasing power, with food prices already soaring and placing significant financial burden on families.

Additionally, companies have raised concerns over the effectiveness of such regulations with regards to its intended health objectives. The letter highlights a lack of ‘robust evidence’ that a sugar levy is effective in solving ‘complex societal challenges’ relating to obesity and diet-linked diseases,’ pointing instead to structural financial problems facing Germany’s statutory health insurance system.

The companies expressed concerns over following a similar model to the UK, where a soft drinks levy was introduced in 2018, claiming that there is no tangible evidence of a meaningful contribution toward public health.

Instead, signatories emphasised that official monitoring shows the sugar content of soft drinks has already decreased by approximately 15% since 2018, attributing this figure to voluntary reformulation and product innovation efforts across the sector. They argue that introducing a sugar tax would undermine this approach, which they describe as successful.

The authors conclude that during challenging times, businesses require reliability and support rather than “new burdens," urging policymakers to reconsider the proposed legislation.