Research from Memorial University has revealed a 12 per cent decline in sales of sugary drinks one year after Newfoundland and Labrador implemented a tax on them.
The findings demonstrate the tax had an effect on reducing sugary drink purchases, which may have long-term benefits for heart and brain health.
That’s according to Dr. Rachel Prowse, an assistant professor of nutrition and dietetics in the Faculty of Medicine, and Dr. Scott Harding, an associate professor of biochemistry in the Faculty of Science, who led the research.
Promising results
Funded by Heart & Stroke, the researchers’ report evaluated the impact of the tax on pricing, marketing, sales and consumption.
While the results are promising, they also say improvements to the tax’s design and implementation could drive even greater public health impact.
That’s if the provincial government reverse its recent decision to repeal the tax by July 1, 2025.
Dr. Prowse says they were encouraged to see that the likelihood of consuming any taxed sugary drink in a given week decreased by 24 per cent.
“The exclusion of several sugary drinks from the tax was a significant limitation of the provincial tax policy.”
At the same time, they found a 52 per cent increase in the likelihood of consuming certain sugary drinks that were excluded from the tax, such as chocolate milk and flavoured coffees.
“The exclusion of several sugary drinks from the tax was a significant limitation of the provincial tax policy,” said Dr. Prowse.
Public health benefits
Sugary drinks and excess sugar consumption are associated with chronic diseases, including obesity, hypertension, heart disease and diabetes, as well as cavities.
“People in Newfoundland and Labrador face some of the toughest health challenges in the country,” said Dr. Prowse. “The public health benefits of this tax could be strengthened with a few actions: tax all sugary drinks, show the increased price that includes the tax at shelf or on the price tags, index the tax to inflation and reinvest the revenue in public health initiatives, with a focus on reducing inequity.”
The researchers note the importance of ensuring that healthier alternatives, such as water, are accessible, particularly for lower-income and food-insecure populations, and that access to clean water is key to improving the effectiveness of the sugary drink tax and its impact on health equity, were it to continue.
Clear recommendations
Interestingly, the researchers found that changes in sugary drink intake were more evident among food-secure and higher-income households, groups who the researchers suggest might have more flexibility to switch to non-taxable alternatives.
Meanwhile, boil water advisories were not linked to sugary drink intake, but people with negative attitudes toward tap water drank significantly more sugary drinks and significantly less water.
Dr. Harding hopes the provincial government will draw on his and Dr. Prowse’s research to inform the development of stronger, evidence-based public health policies that address the “urgent” issue of obesity in Newfoundland and Labrador.
“We need policy solutions that make healthy choices easier, not just cheaper calories more available.”
He points out that recent political rhetoric framed the tax as an affordability issue for households, but that the framing obscures the real affordability crisis: the rising cost of healthy eating in this province.
“Eliminating the tax will not make nutritious food more accessible; it will simply make it marginally cheaper to consume excess sugar from certain beverages,” said Dr. Harding. “If the goal is to support the health and well-being of residents, we need policy solutions that make healthy choices easier, not just cheaper calories more available.”
Heart & Stroke recommends provincial and territorial governments take steps to reduce the consumption of sugary drinks to help reduce the prevalence of diet-related chronic diseases.
“This research supports the case for action, offering clear recommendations that can be used by governments in Newfoundland and Labrador, as well as other provinces as they consider a levy on sugary drinks to discourage consumption,” added Doug Roth, the CEO of Heart & Stroke. “This measure, when combined with other policies, can make it easier for people in Canada to make healthier choices and reduce the overall burden of heart disease and stroke.”
This project was made possible through funding from Heart and Stroke. Additional funding for the project was provided through Proof of Concept Intervention Grants in Primary Prevention of Cancer of the Canadian Cancer Society and the Canadian Institutes of Health Research-Institute for Cancer Research (CCS grant #707239/CIHR-ICR grant #181053) and Memorial University.
