The sugar tax was announced by the chancellor George Osborne in his March Budget and is expected to be implemented in 2018 bringing in an estimated £520m in its first year, according to the Treasury.
Writing a blog post on the Coca Cola website, Woods said: “As well as being ineffective, the sugar tax will not just impact the manufacturers of soft drinks, but also the thousands of businesses – the sugar farmers, suppliers, pubs, restaurants and newsagents - for whom soft drinks are a vital part of their trade.
“It will also hit consumers in the pocket regardless of what they drink. The Office of Budget Responsibility (OBR) has reported that it will cost more than £1bn in its first year due to an increase in interest payments on inflation-linked Government loans.
“That’s almost twice the amount the Treasury claims it will raise and a bill the taxpayer will presumably have to pay – and it does not factor in the increase in the cost of a weekly shop. Finally, the regressive nature of the tax means those least able to afford it will be hit the hardest.”
In an interview with Sky News yesterday, the UK&I manager also said that he expected the ‘majority’ of the tax will be picked up by its customers and that more effective measures can be introduced.
He said: “I think there are much more effective ways, that we have been following as a company in the UK for a number of years, that actually help people reduce their sugar consumption.
“If I look at the last five years as an example, we've reduced the sugar in 27 of our leading drinks, every time maintaining a great taste profile but always, always, always helping consumers to consume less sugar.”
Many figures from across the food, drink, health, business and political spheres called for the sugar tax in the run up to its surprise inclusion in the Budget. Many said it was an essential step in tackling the growing childhood obesity problem in the UK.