On balance, I do think that the sugar tax is a positive step. Professor Nava Ashraf, from the London School of Economics, is a leader in the field of behavioural economics.
The measure is created to help tackle obesity by incentivising consumers to opt for healthier drinks while also encouraging the drinks industry to reduce the added sugar content of drinks. Whereas 25% of soft drinks volume would have been liable to the sugar levy in 2016, just 12% is expected to be liable when the levy kicks in.
"A war is being waged against sugar by the government and the media", said Emma Clifford, associate director of food & drink at Mintel. But will ramping up the cost of high-sugar drinks put fizz in the fight against childhood obesity, or will it fall flat?
However, a great numerous sugary soft drinks purchased from supermarkets have already changed their formulations in order to avoid the tax.
The charity Cancer Research UK estimates that around half of drinks that would have been taxed have reduced the level of added sugar in their recipes. Consumers are already opting for lower calorie alternatives, which could prove beneficial to operators, giving them the opportunity to adjust their prices and differentiate between low and full sugar options, with minimal detrimental effect.
For drinks with a sugar content of 8g or more per 100ml - a sugar content of 8% or above - the tax adds 24p per litre to the cost. It is believed manufacturers of soft drinks which contain more than five grams of sugar per 100ml will have to pay 18p per litre to the Treasury.
The government hopes the tax will raise £240 million ($335 million, 274 million euros) per year, which it will spend on sports facilities and breakfast clubs.
"This isn't simply a case of brands looking to avoid paying tax, we're seeing a real sea change with brands of all sizes exploring new product and flavour innovation from low-sugar soft drinks targeting adults, to new lines for vegans".
According to the NHS, eating too much sugar can make you gain weight, and can also cause tooth decay. As such, these fizzy drinks will cost customers that little bit more.