The recent announcement by Finance Minister Michael Noonan about the introduction of a Sugar Tax in Ireland as part of Budget 2018 is expected to translate in an increase in the price of sugary drinks from April next year.
The new tax will represent an extra 20c per litre on drinks with between 5g and 8g of sugar per 100ml, and 30c per litre on those with more than that.
While this rule only applies to non-alcoholic beverages, your mixed drinks will still be affected as many popular mixers contain sugar. For example, tonic water contains as much as 9g of sugar per 100ml, which will locate it in the highest tax band.
And it’s not just Gin & Tonics. Rum and Coke will also be affected by the tax (any mixed drink involving Coca-Cola will, given the high sugar content of the famous fizzy drink).
Another unexpected drink touched by the Sugar Tax will be the popular Jameson and Ginger Ale, given the fact that ginger ale’s sugar content can range between 7g to 9g per 100ml (for example, 100ml of Fever-Tree Ginger Ale contain 7.1 grams of sugar).
Other ginger flavoured tipple to be affected by the tax is The Dark ‘n’ Stormy, as Ginger Beer carries a hefty amount of sugar, 9g per 100ml.
Some sweet cocktails such as Old Fashioneds, Mojitos and Caipirinhas won’t be affected by the tax, given that no taxed sugary drinks go into them (even though they contain syrup or white sugar).
The tax doesn’t sound like much (6c per 200ml bottle of tonic water) but the extra cost is expected to be passed on to customers. It can, however, be avoided if you stick to diet or sugar-free mixers.
For more information on how the Budget 2018 relates to the hospitality industry click here.