The role of the European non-alcoholic beverage sector in a competitive Europe

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Nicholas Hodac

By Nicholas Hodac

Director General of UNESDA Soft Drinks Europe

12 Nov 2024


Unesda

As the largest manufacturing industry in Europe, the food and drink industry plays a strategic role in driving sustainable growth, economic prosperity and ensuring food security.

With the start of a new EU political term, we have another unique opportunity to position this industry where it belongs - at the top of the EU’s competitiveness agenda.

Even though overlooked in the Draghi Report, the relevance of the food and drink industry for Europe’s competitiveness is clear and more credit needs to be given to its significant contribution to the European society and economy. A positive example is the Strategic Dialogue on the future of EU’s agriculture and food, which resulted in a balanced set of guiding political principles and recommendations that should inform the European Commission’s Vision for Agriculture and Food.

While we await to see how this vision will take shape, and what the overall EU’s political direction will be over the next five years, now is a great time to reflect on how we – industry, policymakers and civil society – should closely collaborate to co-create policies that not only protect the environment but also ensure the industry’s competitiveness.

The soft drinks sector matters to Europe’s citizens and economy

Within the European food and drink industry, the soft drinks sector is especially vital to Europe’s competitiveness. With over 500 production facilities in Europe, we contribute to the livelihoods of hundreds of thousands of farmers and many other families from across the continent by supporting more than 1.8 million jobs throughout our value chain.

We also maintain a deep-rooted local presence by manufacturing more than 97% of our soft drinks within Europe and sourcing more than 85% of our ingredients from European farmers. Remarkably, our value chain is estimated to be worth €242 billion annually.

This demonstrates how much we matter to make Europe thrive and why it is crucial that our sector receives the policy support it deserves to stay competitive while continuing to advance environmental sustainability.

The top 3 conditions for a competitive and sustainable soft drinks sector

As outlined in our 2024-2029 Manifesto, our sector remains firmly committed to driving positive change for a thriving and sustainable future for our environment, consumers, and businesses. This requires an enabling policy framework and close collaboration with policymakers, who should support us by:

  1. Prioritising proper implementation of existing EU laws, such as the EU Packaging and Packaging Waste Regulation;
  2. Ensuring, as part of the Vision for Agriculture and Food, that the Commission will collect up-to-date and reliable pan-European dietary intake data to better understand what interventions can be effective and that policies are science-based and do not discriminate against any specific food, drink or ingredient;
  3. Recognising voluntary actions, including the continuation of the EU Code of Conduct on Responsible Food Business and Marketing Practices, as an effective tool for achieving wider positive impact.

We look forward to working together with policymakers to create growth-oriented, science-based policies that enable the soft drinks sector to drive economic growth and environmental sustainability — crucial for ensuring a competitive Europe.

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