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ARTICLE · 12 APRIL 2018

The "Sugar Tax"

Brodies LLP
Brodies LLP
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Brodies LLP

Brodies LLP

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Earlier this year, AG Barr took the brave step of reducing the sugar content of its most iconic drink.

United KingdomTax

Made in Scotland from (slightly less sugary) girders

Earlier this year, AG Barr took the brave step of reducing the sugar content of its most iconic drink. Irn Bru drinkers across Scotland breathed a collective sigh of relief when only the supertasters among them were able to spot the difference. This relief was no doubt shared at AG Barr when already strong sales continued, with a predicted 7.5% sales increase across its drinks portfolio for 2017-2018.

This move by AG Barr (mirrored by similar steps taken by other manufacturers) was a preemptive response to the Soft Drinks Industry Levy (SDIL) which came in to force last Friday [on Friday 6 April 2018].

With the introduction of the SDIL the UK joined the very small number of sugar-obsessed nations whose anti-obesity policy features a tax on sugary drinks. Manufacturers of qualifying drinks now face an additional tax on any high-sugar drinks they sell.

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