Alongside the boom in demand for gin, has come its potential price rise of more than 11p as sellers pass on the cost of sugar tax to consumers.
Under the new tax, soft drinks with more than 5g of sugar per 100ml are subject to the new levy, which has been introduced to target childhood obesity.
Over £240million is expected to be made from the tax which will be invested into sports in primary schools.
In a bid to limit against the beverage sellers losses to the tax, bars, pubs and restaurants could raise the price that nations current favourite drink-gin and tonic- by over 11p.
“Shrinkflation” is another potential side effect of the tax. This is where the size of the product is cut, but not the cost.
Another strategy might also be that restaurant, bars and pubs opt to use low-calories sweetener drinks rather than sugary drinks. Schweppes has reduced the sugar in its tonic water, ginger ale and bitter lemon, so at 4.9g of sugar over 100ml, they all fall below the tax threshold.