Sugar tax ramifications will be ‘huge’

The sugar tax announced in the budget took some by surprise. Not so Doug Fair of InfinityQS, a provider of SPC software for manufacturers.

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Chancellor George Osbourne announced a sugar tax which caused shares in listed drinks firms to drop sharply. The move took many MPs by surprise but others had read the warning signs.

Doug Fair, chief operating officer at Statistical Process Control (SPC) software specialist InfinityQS, said that packaging firms, raw materials suppliers, and beverage companies will all feel a significant increase in pressure, resulting in beverage companies needing to place a greater emphasis on developing new, innovative ways to drive down the costs of its products.

“The ramifications are going to be huge,” said Fair ahead of the chancellor’s announcement. Addressing costs of quality, including scrap, rework, and inspections, is going to be critical to this process. An example of this might be reducing overfill – failure to address this is literally pouring money down the drain. It is therefore imperative that firms take definitive actions to improve both efficiencies and operations by implementing an effective quality management system.”

The £530m raised by a tax on the sugar content of soft drinks would be spent on primary school sports, according to the chancellor .

Hannah Maundrell, editor in chief at www.money.co.uk saw the announcement as a victory for ‘the people’.  “Celebrations all round in Jamie Oliver’s empire today, with his campaign and petition signed by over 155,000 people to get a sugar tax on sweetened drinks finally fulfilled.

“Even though fizzy drink lovers will feel like they will be losing out, in the long run by cutting down on these drinks money will be saved on expensive dentist treatment and nobody can put a price on your health. Treating obesity and its consequences currently costs the NHS £5.1bn a year. A welcomed change and a nod to the power of the people”.

To read more from Doug Fair on the ramifications of the sugar tax click here.

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