New research revealed a 12% decline in sales of sugary drinks one year after Newfoundland and Labrador implemented a tax on them, demonstrating the tax had an effect on reducing sugary drink purchases which may have long-term benefits for heart and brain health.
The research, led by Dr. Rachel Prowse and Dr. Scott Harding at Memorial University and funded by Heart & Stroke, evaluated the impact of the tax on pricing, marketing, sales and consumption. While the results of the evaluation are promising, the report also reveals aspects of the tax’s design and implementation where improvements could drive even greater public health impact should the provincial government reverse its recent decision to repeal the tax by July 1, 2025.
“We were encouraged to see that the likelihood of consuming any taxed sugary drink in a given week decreased by 24%,” says Dr. Prowse, assistant professor at Memorial University. At the same time, the researchers found a 52% 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.”
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,” says 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, noting access to clean water is a key step to improving the effectiveness of the sugary drink tax and its impacts on health equity, were it to continue. Interestingly, 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.
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 NL, as well as other provinces as they consider a levy on sugary drinks to discourage consumption,” adds Doug Roth, CEO, 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.”
Additional funding for this 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.
For more information
- Read the report: Evaluating Canada’s First Sugar-Sweetened Beverage Tax - The Impact in Newfoundland and Labrador After One Year
- Heart & Stroke’s position statement on reducing sugary drink consumption
- What is ultra-processed food and how can you eat less of it?
About Heart & Stroke
Life. We don’t want you to miss it. That’s why Heart & Stroke has been leading the fight to beat heart disease and stroke for more than 70 years. We must generate the next medical breakthroughs, so Canadians don’t miss out on precious moments. Together, with the generous support of our donors, partners and volunteers we are working to prevent disease, save lives and promote recovery through research, health promotion and public policy. Heartandstroke.ca @HeartandStroke
Contact information
Natalie Lian, Communications Advisor, Western Canada
Natalie.Lian@heartandstroke.ca
416-386-4708