Dutch juice producers urge government to exempt pure juices from sugar tax
Dutch fruit and vegetable juice producers are calling on the government to exempt their products from the sugar tax, arguing that pure juices should not be treated the same as soda and energy drinks. The tax, which applies to fruit juices as well as sugary soft drinks, was raised from 8.83 cents per liter to 26.13 cents per liter on January 1, 2024.
Albert Schulp, founder of Schulp Vruchtensappen, said the higher tax has hurt sales. "Ten percent less over the last two years for all fruit juices. Meanwhile, energy drinks have risen ten percent despite the tax increase," he told RTL. "We find it really frustrating to be treated the same way as soda and energy drinks."
Smaller brands, like G’nger & Van Kempen Fruitsappen, have absorbed the increase. "We didn’t raise prices on our ginger products; we swallowed the increase ourselves. Ginger naturally contains almost no sugar, which makes the sugar tax especially unfair on these products," owner Margreet Apeldoorn said.
Appelsientje previously avoided the tax by adding a small amount of dairy to its drinks, a loophole the government now plans to close. The Tweede Kamer and Eerste Kamer must still approve the new rules.
Researchers are divided on health effects. Floor Scheffers told RTL that pure juice is not as harmful as soda. "People who drank up to seven glasses of juice per week had a lower risk of cardiovascular disease than those who drank none," she said. "Fruit juice is not as healthy as fruit, but also not as unhealthy as soft drinks. It sits in between."
Producers are turning to politics to influence the debate. Henk Vermeer, Tweede Kamer member for BBB, called the tax an "absurd incentive." "A fresh bottle of apple juice is not a bottle of cola," he said. Vermeer favors raising taxes on drinks with added sugar while exempting pure juices.
Producers hope lawmakers adopt a model similar to the U.K., which taxes only added sugars, leaving natural sugars in fruit and vegetable juices untaxed.
This week, the Tweede Kamer will debate extending the sugar tax to beverages with added dairy, such as Fristi and Chocomel, while leaving mineral water, unsweetened dairy, and soy drinks exempt.
In March 2024, juice maker Appelsientje skirted the recently increased Dutch sugar tax by introducing “Appelsientje FruitDrink,” a fruit juice containing a tiny amount of dairy. The addition, as little as 0.02 percent milk fat, exempts the drink from the consumption tax on non-alcoholic beverages, which had nearly tripled earlier that year to 26 cents per liter for soft drinks, energy drinks, and fruit juices.
