Grading beverages based on their fat and sugar content has emerged as a new trend in Shanghai, the bustling metropolis in east China. When ordering certain drinks through apps or buying beverages in supermarkets, consumers can now see them categorized into four grades—A, B, C or D—with recommended consumption levels decreasing accordingly.

This beverage grading system, initiated in Shanghai in late March, assesses drinks based on four key components: non-dairy sugars, saturated fats, trans fats and non-sugar sweeteners. To secure an A grade, a beverage must contain less than 0.5 g per 100 ml of non-dairy sugars, and less than 0.75 g per 100 ml of saturated fats, less than 0.3 g per 100 ml of trans fats, and it must not contain non-sugar sweeteners. Under this system, a regular Coca-Cola is labeled as a C, while a Diet Coke receives a B.

Setting standards

Zang Jiajie, Director of the Nutrition and Health Department at the Shanghai Center for Disease Control and Prevention, told Shanghai local newspaper Wenhui Daily that this initiative aligns with the growing health consciousness among the city's residents.

China's beverage market is now worth more than 1 trillion yuan ($138 billion), with "sugar-free" and "fat-free" options becoming increasingly popular, particularly in new tea drinks like milk tea and fruit tea. Data show that the market size of China's sugar-free beverage industry grew from 2.26 billion yuan ($312 million) in 2015 to 199.6 billion yuan ($27 billion) in 2022, and is expected to reach 748.9 billion yuan ($103 billion) by 2027.

However, the use of ambiguous "free" labels as selling points by many businesses complicates matters. Ingredients and nutritional content are often not clearly labeled, leading to confusion among consumers about the veracity of such claims.

In 2023, the Shanghai Center for Disease Control conducted a nutritional analysis of 122 products from the top three brands of freshly made milk tea in the city. The findings revealed that 93.3 percent of milk teas labeled as having "no additional sugar" actually contained sugar levels exceeding 0.5 g per 100 ml, and 47.4 percent of those labeled "one third sugar" had a total sugar content greater than 5 g per 100 ml. It was discovered that the saturated fat content in a cup of milk cap tea constitutes one third of the recommended daily intake.

In response to these issues, Shanghai introduced regulations last November urging food producers to create low-salt, low-fat and low-sugar products and to clearly label the calories and main nutrients. A survey conducted in 2023 found that 91.76 percent of Shanghai residents supported labeling in key areas, with over 80 percent supporting the introduction of labeling for milk tea.

"Nutritional grading is essential for consumers pursuing a healthy diet," Zang emphasized. This system helps translate complex calorie information into four straightforward grades, simplifying consumer choices. The reason for selecting non-dairy sugars, saturated fats, trans fats, and non-sugar sweeteners as grading standards, Zang said, is primarily the health risks associated with the excessive consumption of these components.

He also noted that the trend toward developing and refining nutritional grading is expanding to additional food categories, with many research institutions in China actively contributing to this effort.

Currently, four companies are participating in the pilot phase of this grading system, which includes both freshly made and packaged beverages. The grades are prominently displayed on product menus, beverage packaging, online ordering systems, and at sales venues. A representative from Nayuki Tea, one of the pilot companies, reported that the grading has been implemented in over 90 Nayuki stores in Shanghai.

Globally, using grades to effectively communicate the nutritional value and health implications of foods is not a new concept. Similar systems include Singapore's Nutri-Grade system, the United Kingdom's traffic light system, Chile's black warning labels, France's Nutri-Score, and Australia's Health Star Rating system.

From local to national

"The grades of some drinks are not as high as we might assume," a college student in Shanghai, surnamed Xu, told Shanghai Daily. "A glass of lemon tea, primarily composed of lemon and oolong tea, might seem like a healthy option at first glance," she said. "But it only rates a B. If you choose to add a small amount of sugar, the rating drops to a C."

Zang explained that the grade of a beverage is determined by its "weakest link." For instance, if a drink meets the A standards for trans fats and non-sugar sweeteners but only reaches the C standard for non-dairy sugars, it will overall be rated as a C. Since all four components need to be consumed in moderation or limited quantities, the overall grade is determined by the weakest component.

Most fruit juices, although free from cane sugar, may still contain fructose. Even without added sugars, other component limitations might prevent them from achieving an A grade. Based on this grading, those that achieved an A grade were mostly fresh-brewed teas without other components.

Some consumers mockingly described this grade as taste grades: The drinks in grade-C are usually tastier than those in grades A and B. However, sales data from the piloting businesses indicate a significant increase in the sales of grade-A and grade-B beverages, which has pushed companies to reformulate their products to meet the higher standards.

Data provided by Nayuki Tea, for example, demonstrate that there has been a significant increase in the sales of grade-A and grade-B products at their Shanghai stores. A similar trend is observed with another pilot brand, Chagee, where nearly 70 percent of consumers choose grade-A and grade-B products, and the sales proportion of these grades continues to rise.

Many netizens have expressed support for beverage grading and hope it can be implemented nationwide. Zang said the Shanghai beverage grading pilot is set to last one year, during which time feedback will be collected to refine grading standards, and illuminate decision-making by the related departments in Shanghai and nationally.

Additionally, Guangdong Province in south China is also improving government regulations on health promotion and education activities. The recently disclosed regulations on health promotion in Guangdong have been included in a legislative plan set to be reviewed by the Guangzhou Municipal Government within this year. These regulations intend to provide standardized guidance for the promotion of healthy living concepts across society.

"It is undeniable that the policy resonates with public opinion," Zhao Rui, an independent tea drink analyst in Beijing, told The Beijing News. "The widespread call from consumers for a national rollout reflects a strong consensus."

Copyedited by G.P. Wilson

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