Germany’s coalition agrees on a sugar tax for sweetened drinks starting in 2027

Germany’s governing coalition has reached an agreement on a proposed sugar tax on sweetened beverages, according to DEHOGA Bayern, the Bavarian hotel and restaurant association, which said it remains critical of the plan even after the political compromise.

In a statement published Tuesday, DEHOGA Bayern said the current outline would impose a levy of 26 euro cents or 32 euro cents per liter on sugary drinks starting July 1, 2027. The association said alcoholic beverages would be excluded from the measure, along with nonalcoholic beer.

The announcement offers one of the clearest public indications so far of how the coalition plans to draw the line between taxed and exempt drinks. DEHOGA Bayern did not present the agreement as settled law, but as a coalition deal that still raises concerns for the hospitality industry.

The group’s response suggests that its main objections have not been resolved by the compromise. While the statement available from the association did not spell out every concern in detail, DEHOGA Bayern made clear that it continues to view the proposal critically from the perspective of hotels, restaurants, cafes, and other hospitality operators.

The planned structure matters beyond grocery shelves. For bars, restaurants, and catering businesses, the tax could affect the cost of soft drinks and sweetened mixers that are widely used in everyday service. At the same time, the reported exemption for alcoholic drinks and nonalcoholic beer could limit the direct effect on beer sales and on parts of the low- and no-alcohol market that have grown in recent years.

That distinction is likely to be closely watched by beverage producers and hospitality operators. If the measure is enacted in the form described by DEHOGA Bayern, companies selling sodas, flavored soft drinks, and similar products could face higher costs or pressure to adjust prices, recipes, or package sizes. Businesses that rely on those drinks as stand-alone products or as cocktail ingredients could also be affected.

The coalition’s reported decision to leave alcoholic beverages outside the tax would avoid a broader intervention in the beer, wine, and spirits market. The separate treatment of nonalcoholic beer is also notable because it gives an early signal that lawmakers may not classify all sweetened beverages in the same way, even when they compete in similar retail and food-service settings.

Public health advocates in several European countries have supported sugar taxes as a way to discourage high-sugar consumption and push manufacturers toward reformulation. Industry groups, including hospitality and beverage associations, have often argued that such levies raise costs for businesses and consumers while adding complexity for producers and retailers. DEHOGA Bayern’s reaction places it firmly in that second camp.

For now, the information released by the Bavarian association points to a tax framework, an expected start date, and the categories that would remain exempt. What is still less clear from the material available is how the final legislation would define sugar thresholds, which products would fall into each tax band, and whether the coalition agreement will move forward without further changes in the federal legislative process.