The price of soft drinks is distorted by marketing considerations. The actual price of the raw materials becomes more visible in drinks that aren't so heavily marketed, like orange squash. It's clear that sugar is more expensive than artificial sweetener (as a raw material) based on the ingredients of the cheapest squash.
It's also true that artificial sweeteners are often bitter or laxative, so there are good reasons to avoid them.
But it is fair to ask, is the current price signal (decided largely by marketing and branding strategy) an accurate reflection of the raw material cost or the health implications? If not, is it wrong for the government to stick their oar in?
The irn-bru* tax would be more appropriate.
* other soft drinks are available
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I'm also not entirely convinced about the idea of them starting to tax everything else that is unhealthy too.
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The price of soft drinks is distorted by marketing considerations. The actual price of the raw materials becomes more visible in drinks that aren't so heavily marketed, like orange squash. It's clear that sugar is more expensive than artificial sweetener (as a raw material) based on the ingredients of the cheapest squash.
It's also true that artificial sweeteners are often bitter or laxative, so there are good reasons to avoid them.
But it is fair to ask, is the current price signal (decided largely by marketing and branding strategy) an accurate reflection of the raw material cost or the health implications? If not, is it wrong for the government to stick their oar in?
Reply
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