What role does the soft drinks sector play in driving the European economy?
We are proud of how local we are as a sector: we produce where we sell, sourcing more than 85% of the ingredients we use from European farmers. But we do more than just sourcing locally. We are supporting the communities where we operate, working closely with partners all along the value chain, including farmers, retailers, distributors and HoReCa.
This strong local presence also keeps us close to our consumers - something which is very important to us. It helps us understand what consumers need and expect to quickly respond to what they want. That’s what drives our innovation efforts. We keep innovating to offer consumers more beverage choices, including a growing range of low/no-calorie options to support healthier lifestyles - and we do it by also using more sustainable packaging and scaling up packaging-free options to meet their sustainable consumption habits.
Our sector is a key driver of the European economy. We are deeply rooted in Europe, producing both our well-known global brands and local beverages right here in the continent. We have more than 500 production facilities across the region where we manufacture over 97% of our soft drinks sold in Europe. This means our sector is generating jobs for lots of Europeans – creating more than 1.8 million jobs and generating €242bn across its value chain in Europe.
Andrew McMillin is President of UNESDA Soft Drinks Europe and President of Western Europe Operations at The Coca Cola Company.
We keep innovating to offer consumers more beverage choices, including a growing range of low/no-calorie options to support healthier lifestyles - and we do it by also using more sustainable packaging and scaling up packaging-free options to meet their sustainable consumption habits.
What are the major changes that are needed to strengthen the soft drinks industry’s competitiveness and foster innovation?
EU regulatory simplification can serve as a powerful driver of innovation, and the soft drinks industry has consistently led the way as one of the most innovative sectors in the F&B space. By reducing unnecessary compliance costs, our industry can focus more resources on developing new ideas and solutions—advancing sugar reduction, sustainable packaging, operational efficiency, and climate initiatives such as protecting water resources and biodiversity.
There is already a clear push from policymakers to boost industrial competitiveness through regulatory simplification and innovation, with initiatives like the European Commission’s Competitiveness Compass, the new Single Market Strategy, and the EU Vision for Agriculture and Food. Our sector welcomes this policy approach and sees it as an opportunity to ensure policy stability. Clear and straightforward rules are crucial for business growth, innovation, and strengthening Europe’s leadership in the global stage.
There are more specific steps that the EU can take to address the real regulatory barriers that businesses face. One example of this is the 30% energy reduction rule limiting our sugar reduction efforts. By EU law, manufacturers are only allowed to add a low or no-calorie sweetener to foods and drinks if the energy value has been reduced at least by 30%. This requirement has no technical or scientific basis. Our sector proposes removing it to encourage reformulation, bring EU legislation in line with the opportunity to continue reducing sugar intake, and meet the evolving expectations of European consumers.
Finally, for our sector to remain competitive, it is essential that policies are evidence-based and do not discriminate against any specific food, drink, or ingredient. We welcome the European Commission’s announcement, as outlined in its Vision for Agriculture and Food, to explore the collection of consumer dietary intake data. This is an important step to better understand what Europeans are actually consuming nowadays, and identify effective measures to better promote balanced diets.
A key challenge facing a number of sectors will be how to strike a balance between competitiveness and sustainability. How can that be achieved in the soft drinks sector?
The real challenge for businesses is not necessarily the ambition of the EU’s sustainability goals but the complex regulatory environment they must comply with to achieve these goals and the significant costs that come with compliance. This limits the industry’s competitiveness and innovation potential. It is critical to simplify environmental legislation and clarify a number of key elements, especially regarding the EU Packaging and Packaging Regulation (PPWR). For instance, businesses currently seek clarity on how reuse and recycled content targets will be calculated, while at the same time they must prepare for compliance.
Ensuring legal clarity and consistency is key for businesses to plan, adjust their operations and meet regulatory requirements. That helps drive sustainable growth, boosts innovation and supports competitiveness.
Our sector is committed to continuing driving environmental sustainability. We will keep engaging with policymakers to help shape coherent and clear EU environmental laws that support our green transition and our competitiveness.
for our sector to remain competitive, it is essential that policies are evidence-based and do not discriminate against any specific food, drink, or ingredient
What role do you see for voluntary initiatives, such as the EU Code of Conduct on Responsible Food Business and Marketing Practices?
Voluntary initiatives are really a smart and effective way to drive positive change. Our sector’s actions show that: since 2000, we have reduced the average sugar content in our beverages by 35.1% across Europe. We are proud of this achievement. It proves how committed our sector is to support healthier lifestyles by helping consumers manage their sugar intake from our beverages. It also demonstrates how these actions, unlike taxation, are effective and contribute to delivering health improvements.
Voluntary actions can drive real progress and should be further encouraged. The EU Code of Conduct is a great example of this. It’s an initiative that encourages industry to take voluntary action to build a healthier and more sustainable food system. It has created an important platform for open and constructive collaboration between industry and policymakers to find practical solutions with tangible results. That’s how we believe policymaking should work: through partnerships built on trust and grounded in solid evidence to develop sound measures that benefit citizens, businesses and the environment.
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