Signs the American public is losing its appetite for sugar laden fizzy drinks could offer hope the UAE’s new ‘sin tax’ may also encourage healthier choices here.
As US consumers appear to be turning their backs on junk food and sugary drinks in favour of a more health conscious lifestyle, the UAE has continued to see growth in obesity and diabetes.
PepsiCo, the American multi-national responsible for some of the UAE’s favourite soft drinks like Pepsi and Mountain Dew, has reported a fall in drink sales in the region for the first time in two years.
The company is adapting to the change in consumer demand by developing alternatives to its high sugar drinks with a range of purified waters and low-calories drinks sweetened by natural sugar substitutes.
PepsiCo’s CEO Indra Nooyi blamed a drop in sales during the third quarter on a cooler summer in North America and Canada, that impacted on one of the company’s biggest sellers, Gatorade.
"No question about it, our performance did lag the industry, " said Mrs Nooyi.
Revenue from beverages in North America, PepsiCo's biggest market, fell 3 percent.
A focus on marketing of the new healthier range of drinks had also been one of the reasons behind the drop in sales, Mrs Nooyi added.
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Read more:
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American tastes may not be about to completely abandon junk food just yet, however, as PepsiCo said the Frito-Lay side of the business saw a 3 per cent increase, thanks in part to its jalapeno-flavored Cheetos and Ruffles chips.
The UAE has taken its biggest step yet in a war on junk food and unhealthy living by introducing a hefty tax on carbonated sugar drinks, caffeinated drinks and tobacco from October.
Although its impact is yet to be fully felt, health experts hope it may encourage those in the UAE to follow the American trend of beginning to make healthier choices.
In 2016, the World Health Organisation said the prevalence of worldwide obesity had more than doubled between 1980 and 2014,
The WHO recommended a 20 per cent increase in retail prices of sugary drinks would result in a proportional reduction in consumption.
It also recommended subsidised fruit and vegetables to encourage healthier choices.
On launching the UAE’s new excise tax, Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, UAE Minister of Finance and Chairman of the Federal Tax Authority, said the tax would discourage the consumption of unhealthy products.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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A MINECRAFT MOVIE
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The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
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Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
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Al Watan newspaper
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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances