Drinks containing higher sugar levels have seen a drop in sales following the introduction of a new excise tax policy whereby consumers will have to shell out more for drinks and juices containing more sugar, say retailers. “Since the new excise tax came into effect, customers have noticed higher prices on drinks that contain more sugar. This has influenced buying decisions at supermarkets. At the same time, many beverage brands have started reducing sugar levels or launching healthier options to adjust to the new tax system,” said Dr Dhananjay Datar, chairman and managing director of Adil Group of Supermarkets. He added that demand for high-sugar drinks has reduced, and increased for drinks containing low- or zero-sugar drinks due to affordability factors as well. “We are clearly seeing this change at the retail level. Sales of drinks with high sugar content have slowed down, while low-sugar and zero-sugar drinks are becoming more popular. Price changes, along with better awareness, are encouraging shoppers to choose healthier alternatives,” said Dr Datar. Dr Dhananjay Datar Starting January 1, 2026, the UAE’s Federal Tax Authority (FTA) implemented a “tiered-volumetric model”, which means the excise tax will be calculated based on the total content of sugar (natural sugar, […]