On my first week back at Westminster, I met with Banffshire manufacturer Refresco at an event showcasing the importance of the soft drinks sector to UK manufacturing.
Accompanying Refresco Managing Director, James Logan to this breakfast meeting was Engineer Apprentice, Billy Perry. They were keen to talk through the key issues affecting the soft drinks industry, including the UK Government’s proposal to extend the Soft Drinks Industry Levy (SDIL) as well as obstacles facing the introduction of the UK Deposit Return Scheme, which is due to go live across the country in October 2027.
They also discussed the pressures faced by manufacturers at a time of increasing input costs. Refresco is concerned that all these things taken together could impact its ability to grow the business and boost employee numbers in future.
I was pleased to meet with them both as the Macduff factory has long been an important part of the Banffshire economy and has a long proud history of soft drinks production, notably its Macb range of waters. We had a useful discussion and I will be reinforcing the message from Refresco today to UK Ministers to ensure the position is fully understood.
Refresco has operated the site in Macduff since 2018, after purchasing it from Cott Beverages.
Macb is one of Scotland’s leading brands. Macb water is sourced from an historic spring in Macduff, first discovered over 250 years ago, known as the Well of Tarlair. In 2024 Macb maintained its position as the No. 1 flavoured water in Scotland and this year Macb’s Live Bold Community Fund will be selecting several new local organisations to support within the Macduff community and Macb will continue the role of official hydration partner.
The UK Government is proposing to lower the threshold of the SDIL – colloquially known as the “sugar tax” – from 5g to 4g of sugar per 100ml. This threshold change will hit the British soft drinks industry with £220m of costs for a calorie reduction of only half a grape per person per day. SMEs in the soft drinks sector will be hit hardest by the proposal, facing estimated costs equivalent to twice the share of their turnover compared to larger firms (1.97% vs 0.91%).
The Westminster event was staged a short walk away from the Houses of Parliament in London. It was convened by the British Soft Drinks Association, a trade association representing UK producers of soft drinks, including carbonated drinks, still and dilutable drinks, fruit juices and bottled waters. In 2024, more than seven out of every 10 soft drinks sold in the UK was low or no sugar.
Note: Photograph attached shows (l to r): James Logan, Managing Director; Seamus Logan MP; Billy Perry.
