New French sugar tax proposal a 'sham,' food industry group says

French Food Industry Slams Sugar Tax Proposal as Harmful to Manufacturers

French Food Industry Criticizes Proposed Sugar Tax

PARIS, Oct 1 (Reuters) - A proposed French tax on high-sugar processed food is 'a sham' that will hurt struggling manufacturers and consumers while failing to address long-term health issues, the country's food industry association said on Thursday.

Details of the Sugar Tax Proposal

• In its 2027 budget, the French government included a plan to extend a sugar levy on sweetened drinks to ultra-processed foods, aiming to bring in €300 million ($337 million).

Impact on Food Manufacturers

• The measure would further squeeze a food industry in which more factories have closed than opened in France this year for the first time, Jean-Francois Loiseau, chairman of ANIA, told Reuters.

• "This is all a sham," he said on the sidelines of a conference.

Efforts to Reduce Sugar and Fat

• Food makers have reduced fat and sugar content in recent years, but it was difficult to go further for some recipes without affecting product quality, he added.

Challenges Facing the Sugar Sector

• The sugar sector in France and Europe has faced a wave of factory closures, with falling consumption adding to pressure from low commodity prices and market liberalisation.

Legislative Process and Next Steps

• The minority government's budget will now go before parliament, which will likely amend the legislation substantially.

Currency Exchange Rate

• ($1 = 0.8894 euros)

(Reporting by Sybille de La Hamaide, writing by Gus Trompiz, editing by Rod Nickel)