Britain must change what it eats and the way it produces food to stop "terrible damage" to people's health and the environment, a government commissioned report said on Thursday, urging meals with more vegetables and fruit and less fat, sugar and salt.
Seeking to curb widespread obesity and protect the NHS, the National Food Strategy's independent report calls for the introduction of a sugar and salt reformulation tax, with the revenue used to expand free school meals and support the diets of those living in deprived parts of Britain.
It said current eating habits are destroying the environment, which in turn threatens Britain's food security.
"The way we produce food is doing terrible damage to the environment and to our bodies, and putting an intolerable strain on the National Health Service," said the report's author Henry Dimbleby.
"Covid-19 has been a painful reality check. Our high obesity rate has been a major factor in the UK’s tragically high death rate. We must now seize the moment to build a better food system for our children and grandchildren.”
The report, commissioned by the government in 2019, urges food education to be central to the national curriculum, and for food standards to be protected in any new trade deals.
The report also recommends measures to restore and protect Britain's natural environment, by investing in sustainable farming techniques and new food technologies.
According to the report poor diets contribute to around 64,000 deaths every year in England alone and cost the economy about £74 billion.
The report sets out how Britons' diets will need to change over the next decade in order to meet the government’s existing targets on health, climate and nature.
By 2032, fruit and vegetable consumption will have to increase by 30 per cent, and fibre consumption by 50 per cent, while consumption of food high in saturated fat, salt and sugar will have to go down by 25 per cent, and meat consumption should reduce by 30 per cent.
The report estimates its recommendations will cost around £1.4bn per year and bring in up to £3.4bn per year of direct revenue to the government.
The Food Foundation welcomed the report, saying it is a “bold and exciting vision” which sets out a strong set of recommendations.
“We really welcome the strategy that is both very comprehensive and clear in its recommendations to Government,” Laura Sandys, chair of Food Foundation, commented.
“As the Food Foundation has said from its inception the challenges cannot be solved with piece meal one off initiatives but require deep systemic change. This whole system change is very well represented throughout the strategy.
“The strategy, having highlighted the problem and developed the solutions, now need to be acted upon and we will be continuing our campaigning for system change.”
The Food and Drink Federation (FDF), while welcoming the ‘intent’ of the report to increase access and affordability of food and drink for children and families on lower incomes, warned that the proposed tax would be counterproductive.
“A salt and sugar tax will ultimately impact those families who are already struggling to make ends meet, by making food and drink more expensive,” commented Kate Halliwell, the FDF’s chief scientific officer.
“After many years of cost pressures, businesses in our sector are already operating on very tight margins, and any further costs would simply have to be passed on to the consumer in the form of higher food prices.”
Halliwell also contested the claim that the taxes raised will pay for additional health plans, noting that the “same promise was made ahead of the introduction of the soft drinks industry levy but was quietly dropped shortly afterwards.”
“These taxes will not drive reformulation. Food and drink manufacturers have been voluntarily lowering fat, salt and sugars in recipes for decades as well as reducing portion size, but it takes time to change much-loved products. Furthermore, the government’s proposed advertising ban and promotions restrictions would limit the ways in which companies can let families know about exciting new options,” she added.
The government has committed to responding to the report in a so-called White Paper policy document within six months.
The cost of a bottled liquids is soon set to rise as the government’s Extended Producer Responsibility (EPR) packaging levy comes into force this year. To combat the extra cost, many breweries are considering to switch to cans.
Defra, the Department for Environment, Food and Rural Affairs, is introducing the packaging tax to fund recycling. The EPR shifts the cost of household recycling from councils back onto the companies using the packaging.
Recent figures show that the EPR packaging levy will see an increase on the price of products packaged in glass. The biggest rise will be 12.2p a bottle for spirits.
Figures this week from the environmental solutions company Valpak shows that a huge cost will be faced by the companies with spirits at the top, followed by wine, then water and soft drinks in glass bottles, which will see a 6.6p per unit rise.
Defra’s estimates of the EPR fees for glass have varied widely. Its original summer estimate suggested it could be as much as £330 per tonne, but the September iteration fell to a maximum suggested fee of £115 per tonne and now the latest estimate has shot up again to £240 per tonne.
Defra has said it expects 80 per cent of the costs of EPR to be passed onto the consumer. The first invoices are set to land on the desks of producers and retailers in October.
A leading elderflower cordial and soft drinks maker claims that EPR will cost the company £750,000, wiping up to 80 per cent off its profits, The Times reported.
It is also feared due to additional cost by the EPR scheme, breweries will be forced to switch from glass to cans.
According to British Beer & Pub Association chief executive Emma McClarkin, the revised estimates for glass are an extremely "worrying step in the wrong direction".
'Government must be clear-eyed that these proposed higher additional costs on brewers would land an extra £160million, or 5p per glass bottle, on the sector.
"This could force some brewers to leave the glass bottle market.
"Given the incredibly narrow margins UK brewers operate to, as they make an average of 2p per bottle of beer, this means they will be forced to pass on extra painful costs to the consumer if they want to carry on making their product," McClarkin said.
British Glass chief executive Dave Dalton said, "We believe the cost could be even higher once additional supply chain costs and VAT are added."
"The bottom line is that the Government's packaging Extended Producer Responsibility scheme is putting thousands of jobs at risk in a sector that employs 120,000 in its supply chain - potentially shattering the UK glass sector."
Producers of soft drinks in plastic bottles and cans are exempt until 2027 as they have lobbied to be covered by a different deposit scheme.
A substantial quantity of illicit tobacco and cigarettes have been seized by Northumberland County Council’s Trading Standards officers from a location in southeast Northumberland.
Following intelligence, Trading Standards officers attended a business location where they discovered and seized 8,875 pouches of illicit Turner tobacco along with 76,000 illicit cigarettes with a potential retail value of over £400,000.
A criminal investigation into the suppliers of the tobacco and cigarettes is now underway.
“This illicit tobacco and cigarettes were destined to be sold across Northumberland. A seizure of this size will make a huge impact on the organised crime gangs who were set to profit from it and will significantly disrupt the illicit tobacco supply chain across our region,” Cllr Gordon Stewart, cabinet member with responsibility for Looking after our Communities at the council, said.
“I hope this sends out a strong and clear message, that we will not tolerate this criminal activity and there is no hiding place.”
Two-thirds of retail leaders respondents say they will raise prices in response to increased NI costs while food inflation could hit 4.2 per cent by the end of 2025, a leading retailers' body has said citing a recent survey.
British Retail Consortium (BRC) today (15) released the findings of a survey of CFOs (Chief Financial Officers) at 52 leading retailers, revealing significant concern about trading conditions over the next 12 months.
Sentiment languished at a concerning -57 with 70 per cent of respondents “pessimistic” or “very pessimistic” about trading conditions over the coming 12 months, while just 13 per cent said they were “optimistic” or very “optimistic” (17 per cent were neither optimistic nor pessimistic).
The biggest concerns, all appearing in over 60 per cent of CFO’s “top 3 concerns for their business” were falling demand for goods and services, inflation for goods and services, and the increasing tax and regulatory burden.
When asked how they would be responding to the increases in employers’ National Insurance Contributions(NICs) (from April 2025), two-thirds stated they would raise prices (67 per cent), while around half said they would be reducing ‘number of hours/overtime’ (56 per cent), ‘head office headcount’ (52 per cent), and ‘stores headcount’ (46 per cent). Almost one third said the increased costs would lead to further automation (31 per cent).
The impact of the Budget on wider business investment was also clear, with 46 per cent of CFOs saying they would ‘reduce capital expenditure’ and 25 per cent saying they would ‘delay new store openings.’ 44 per cent of respondents expected reduced profits, which will further limit the capacity for investment.
This survey comes only a few weeks after 81 retail CEOs wrote to the Chancellor with their concerns about the economic consequences of the Budget. The letter noted that the retail industry’s costs could rise by over £7 billion in 2025 as a result of changes to employers’ NICs (£2.33 bn), National Living Wage increases (£2.73bn) and the reformed packaging levy (£2 billion).
The Budget is not the only challenge retailers are facing, with weak consumer confidence and low consumer demand also an issue. As part of the survey, CFOs offered their forecasts for the year ahead. These suggest that shop price inflation, currently at 0.5 per cent, will rise to an average of 2.2 per cent in the second half of 2025. This would be most pronounced for food, where inflation is expected to hit an average of 4.2 per cent in the second half of the year.
The forecast for sales was more muted. While sales growth is expected to improve on the 2024 level of just 0.7 per cent , at just 1.2 per cent this would still be below inflation. This means the industry could be facing a year of falling sales volumes at the same time as huge new costs resulting from the Budget.
Helen Dickinson, Chief Executive at the BRC, said, “With the Budget adding over £7bn to their bills in 2025, retailers are now facing into the difficult decisions about future investment, employment and pricing.
"As the largest private sector employer, employing many part-time and seasonal workers, the changes to the NI threshold have a disproportionate effect on both retailers and their supply chains, who together employ 5.7m people across the country.
“Retailers have worked hard to shield their customers from higher costs, but with slow market growth and margins already stretched thin, it is inevitable that consumers will bear some of the burden.
"The majority of retailers have little choice but to raise prices in response to these increased costs, and food inflation is expected to rise steadily over the year. Local communities may find themselves with sparser high streets and fewer retail jobs available. Government can still take steps to shore up retail investment and confidence.
"Business rates remain the biggest roadblock to new shops and jobs, with retailers paying over a fifth of the total rates bill. The Government must confirm the planned reforms will make a meaningful difference to retailers’ bills and that no shop will end up paying more.”
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Façade of the Brown-Forman Corporation building in Louisville, Kentucky
Jack Daniel’s owner Brown-Forman Corporation has announced a series of measures including the restructuring the executive leadership team and an approximately 12 per cent reduction in its global workforce.
The company will also close its Louisville, US-based barrel-making operation, Brown-Forman Cooperage.
“In 2025, Brown-Forman celebrates 155 years of delivering Nothing Better in the Market. We have achieved this impressive milestone in part because of our relentless focus on evolving our strategy, our portfolio, and our organisation to grow and thrive,” said Lawson Whiting, president & chief executive officer.
“Today’s announcement will ensure we have the structure and teams in place to continue on this path, while also making investments that we believe will facilitate growth for generations to come.”
Brown-Forman has restructured its executive leadership team, consolidating and streamlining its commercial structure to leverage greater synergies and effectiveness in its markets.
Under the changes, Jeremy Shepherd has been named chief marketing officer. Shepherd previously led the company’s USA & Canada commercial division.
Michael Masick has been named president, Americas. Masick will continue commercial leadership for Mexico, South and Central America, and the Caribbean. In his expanded role, he will add USA & Canada to his remit.
Yiannis Pafilis has been named president, Europe, Africa, Asia Pacific. Pafilis currently leads teams across Europe. In this expanded role, he will add Africa, the Asia Pacific region, and global travel retail.
Chris Graven has joined the executive leadership team as chief strategy officer. Graven has held roles in Brown-Forman’s HR, finance, marketing, and commercial organisations in her 20 years with the company.
Brown-Forman said it has made the “difficult decision” to reduce its global workforce by approximately 12 per cent of its 5,400 employees worldwide. The company added that it is “deeply committed” to supporting departing employees with comprehensive transition agreements.
The closure of Brown-Forman Cooperage, set to take effect by 25 April, is expected to impact approximately 210 hourly and salaried employees, part of the overall 12 per cent workforce reduction. The company added that it will source barrels from an external supplier in future.
Collectively, these actions are projected to deliver approximately $70 to $80 million (£65m) in annualised cost savings, a portion of which is expected to be reinvested to accelerate growth. In addition, the company will receive more than $30 million in proceeds in connection with the sale of the cooperage assets. The company expects to incur approximately $60 to $70 million in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closing.
“I want to express my sincere gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions to Brown-Forman,” said Whiting. “We are committed to supporting them through this transition and are confident that these strategic initiatives will ensure the company endures for generations to come.”
Asda has announced a revamp of its leadership team as the beleaguered retailer refocusses on its mission to “satisfy the daily and weekly shopping needs of ordinary working people and their families who demand value”.
The retailer said Liz Evans will take up the position of chief commercial officer, non-food and retail, leading its large store operations on a permanent basis, alongside her continued leadership of the George clothing brand.
Asda has also created a new position on its executive team – chief supply chain officer – to oversee all its food and general merchandise operations. The position is yet to be filled.
To bolster the food team under Kris Comerford, chief commercial officer – food, Ade McKeon rejoins Asda as vice president – ambient, with beer wines and spirits, core grocery, impulse grocery, non-edible and healthcare teams reporting to him.
McKeon previously spent four years with Asda in commercial and brand leadership roles, before joining Accolade Wines as UK and Ireland general manager in 2017. He left Accolade in 2020.
Gemma Lightbody will also be rejoining Asda from Marks and Spencer as business unit director for impulse grocery reporting to McKeon.
Matt Shields will join from Aldi in due course as business unit director for core grocery and current Asda colleague Matt Wood will take on the role of SD commercial operations reporting directly to Comerford with immediate effect.
Commenting on the revamp, Allan Leighton, Asda's executive chairman, said: “Asda's mission is to deliver the value ordinary working people, and their families demand from us. To do this, we need to be and are rediscovering our 'Asda-ness'. I'm delighted to be announcing these leadership changes as we start this journey.”
Asda continues to face significant challenges, with sales declining by 5.8 per cent in the 12 weeks to December 29, 2024 - the steepest fall among the major multiples. This marked nearly a year of consistent sales decline for the supermarket, which has struggled to maintain momentum since early 2024.