Soft drink firms used new tax to raise prices

Following the introduction of a high tax on sweetened beverages in January, their prices rose sharply, exceeding the tax’s expected impact, reckons the Institute for Financial Policy. In June, prices were 46% higher annually, with around 24% attributable to the tax. Consumption fell by 12% in the 1H, while syrup intake declined 15%. However, energy drink consumption rose 7%. Consumers partially switched to smaller beverage packages.

(IFP)