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Food & drink

Danone's boss calls for tax on unhealthy foods

Danone (OTCQX:DANOY)’s boss James Mayer has called for higher taxes on salty, fatty and sugary foods.

Mayer, who runs the UK and Irish arms of the French company behind Evian and Volvic said food producers had not “shown enough appetite to change”.

He also said that only 10% of Danone (OTCQX:DANOY)’s own products would be affected by the tax proposed.

"The UK food industry's efforts to improve the health profile of its products have not moved fast enough," Mayer said in comments first shared with the Observer newspaper and quoted by the BBC.

The UK government did introduce a sugar tax on soft drinks in 2018 but has rejected more recent proposals for further levies.

Sky-high food prices, with inflation running at 19.1%, make it difficult to push through any taxes now.

VAT currently sits at 20% and is not charged for most products, although it is applied to alcoholic drinks, confectionary, soft drinks and crisps.

The food industry has previously lobbied against further taxes but campaigners in favour of the strategy argue that tax revenues could be used to promote healthier eating patterns.

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