The sugar tax is here

The Soft Drinks Industry Levy, or sugar tax, has come into effect in the government’s attempt to reduce childhood obesity by encouraging manufacturers to cut sugar content in their products.

The levy will see result in drinks containing five grams of sugar per 100ml being taxed at 18p per litre, and those with more than eight grams per 100ml being taxed at 24p per litre.

Many big brands have already cut the sugar content of their main products or introduced diet drinks to their range.

Coca-Cola has also cut the sugar in a number of its brands, but it won’t be changing its Classic Coke recipe, meaning a can could cost around 10p more.

The vending sector will likely also be affected by the tax. Automatic Vending Association chief executive David Llewellyn told VI last month it remained to be seen how much of the tax would be passed on from the manufacturers to the operators.