Exploring the Sugar Sweetened Drinks Tax (Sugar Tax) Pass Through Rate in the Irish Hospitality Sector

Background The WHO supports the use of Sugar-Sweetened Drinks Taxes (SSDTs) as a fiscal lever to help reduce sugar consumption and tackle obesity. Obesity is associated with a range of adverse health outcomes. In response to increasing levels of obesity in Ireland a SSDT was introduced in 2018. Previous research in Ireland has noted that the pass-through rate of the SSDT in retail (off-site consumption) settings was poor. However, to date no research has examined the SSDT pass-through rate in hospitality (on-site consumption) venues in Ireland. Methods This research examines the SSDT pass through rate on full-sugar versus diet versions of Coca-Cola in a convenience sample of 100 hospitality venues in two provincial Irish cities. Results In 88% of cases the same price was charged for both full-sugar and sugar free drinks. Conclusion It is generally assumed that the SSDT would result in persistent price differences between soft drink prices based on sugar content. However, this is barely evident in the hospitality sector in Ireland. A number of recommendations are suggested, including both increasing the SSDT, and increasing it annually in line with inflation.