1. Presentation to the Standing Committee on Finance and
Portfolio Committee on Health on the taxation of sugar sweetened beverages
6th June 2017
Tshepo Marumule

2. Contents Reflection on the Previous Presentation
Our Understanding and Acceptance of the Problem (economy & health)
SSB Tax Case Studies
Our Proposed Solution
Monitoring & Enforcement
Conclusion

3. Reflection on our Previous Presentation
Showed the effectiveness of a multifaceted interventions
Research Studies
Research conducted by reputable institutions in South Africa and internationally
Proposed double the impact on reduced daily caloric intake
Industry Solutions
Industry solutions through the HFO process in partnership with the Department of Health
Industry committed to finding solutions in partnerships through the Nedlac processes
Consultation
Engagement at Nedlac is continuing and we believe this process should be given an opportunity to find win win solutions

4. Understanding the Problem
The Health Problem
Growing Obesity
Growing NCDs
Growing burden on the state and fiscus
Over-consumption of sugar across food stuffs
The Economic Problem
Growing unemployment
Concentration in the industry
Need for Economic Transformation
New economies and alternative markets (Biofuels & Waste)
False Dichotomy:
Health or Economy is misplaced and not meant to help find solutions

5. Tax Environment Case Studies
*Mexico
Overall increase in overweight and obesity prevalence
Significant increase in rural locations, remaining stable in urban locations
Prevalence increased significantly more within young adults (i.e. age 20-39)
Decrease in middle-aged adults 40-59) is welcome, but occurs in a groups where prevalence is already extremely high
*Berkley, CA
Rates of obesity & overweight increased following the introduction of the tax;
Increase due to increased consumption of untaxed beverages such as flavored milk, milkshakes, smoothies, etc.
Reduced caloric intake from taxed beverages by 6 calorie per day & increased caloric intake from untaxed beverage by 32 calories
Experience shows that a tax has a negative impact on obesity and overweight
*Changes in Price, sales, consumer spending, and beverage consumption one year after a tax on SSBs in Berkly, Carlifonia, US: A before-and-after study
*National Health and Nutrition Survey (ENSANUT – Encuesta Nacional de Salud y Nutrición) 2016

6. BevSA’s Response to NCD
DoH identified drivers of obesity and NCDs
Sugar Reduction (reformulation), Smaller Packs (500ml to 440ml, 330 to 300, removed 2,25, introduced 1,25), marketing of diet, no sugar options, no marketing to children
Working with DoH on new labelling regulation,
Launched healthy lifestyle booklet with Social Development on healthy choices
Network of ECD centres with Social Development
Partnering with Govt on promotion of Healthy Lifestyle e.g Big Walk; community park gyms
Poor Diet
Lack of Knowledge
Poor Early Childhood Feeding Practices
Insufficient Physical Activity
Industry Actions
(Steps already taken)
Reformulation and pack size reductions – examples of what some of the members are already doing
Proposed tax as a solution
Reduce consumption – period
Non-achievement of reduction
Monitoring by SABS
Achieve reduced sugar consumption
Achieve reduced contribution to obesity

7. BevSA Response to the Economic Challenge
Proposed Industry Solution
Purchase from Black Farmers
New Transport Entity
Shrink & Stretch Wrap
PET production
Support ethanol production
Farming Opportunities
Alternative markets
Agriculture
Job preservation and creation
Investment
EconDev
Black Industrialization
Incentive programmes
DTI
New players
Small business development
Small Bus
These opportunities are dependent on a thriving industry

8. Monitoring and Enforcement
State Role
License to Trade
SABS Testing
SABS will conduct regular testing (quarterly or biannually on SSBs;
SABS to oversee
sampling process;
Recommendation is that government should put in place a monitoring system
Government to put in place regulation that compels all players in the beverage industry (and broader food industry)to comply with the commitments made

9. Conclusion Health of the nation matters to BevSA!
Job creation, economic transformation and creation of small business is important to industry and the country
Achieving the Health objective should not be at the expense of the economy and visa versa
Working together – we can improve the health of the nation while maintaining existing jobs, creating new ones and supporting industrialisation
Give the proposed solution a chance through the Nedlac process

10. Thank You!