Former Auckland business leader would 'probably go for' introducing a sugar tax in NZ after global review finds fizzy drink sales decline

An extensive global review has found taxing sugary drinks has resulted in a significant decline in sales.

Researchers analysed dozens of studies on sugar taxes across 12 countries and five US states, finding a 15 percent drop in drink sales. 

More than 45 countries have an additional charge on sweet drinks but New Zealand has yet to introduce one.

Dental Association spokesperson Rob Beaglehole told AM on Thursday while there wasn't enough data to prove an overall sugar tax would have health benefits, there was evidence suggesting starting small with sugary drinks would help.

Dr Beaglehole said the study should be of great interest to policymakers in New Zealand.

And one prominent former business leader thinks the sugar tax idea is a good one.

"I'd probably go for it," said ex-Auckland Business Chamber chief executive Michael Barnett. "I think the more important thing that goes with it should be storytelling; the reason that there's a price on it.

"Rather than do nothing, you'd be better to introduce something so you start a conversation," Barnett told AM.

Former Auckland business leader would 'probably go for' introducing a sugar tax in NZ after global review finds fizzy drink sales decline
Photo credit: Getty Images

The World Health Organization-funded study, published on Thursday in the JAMA science journal, reflected previous research out of the US. One 2019 study found people in Berkeley, California, dramatically cut their fizzy drink consumption after the city implemented a tax. 

Appearing on AM alongside Barnett, independent director and strategic advisor Ziena Jalil suggested New Zealand could go down the UK's route when it came to a sugar tax.

The UK's tax on soft drinks came into effect in 2018. It saw a levy applied to drinks with total sugar content above 5 grams per 100ml. 

"What we've done here is taken sugary drinks out of schools… and that's been helpful. What they did in the UK was: the tax was based on the level of sugar content in the drink," Jalil said.

"That was a useful way that people could still have their drinks - but they were actually consuming less sugar."

However, Prime Minister Jacinda Ardern ruled out introducing a sugar tax in 2019 and Associate Health Minister Peeni Henare told Stuff this week the Government still wasn't considering one.