KINGSTON, Jamaica — GraceKennedy Limited will raise prices on non-alcoholic sweetened beverages by an average of nine per cent from May 1, citing the Government’s new sugar-content-based tax and other cost increases, according to a customer notice seen by the Jamaica Observer.

In the April 24 notice, the Jamaican conglomerate said the increase applies to general trade customers and covers “non-alcoholic sweetened beverages”, along with “other products affected by cost increases”.

“The increase in non-alcoholic sweetened beverages has become necessary due to the introduction of the Special Consumption Tax (SCT) by the government based on sugar content,” GraceKennedy said in the notice. “As a result, we are unable to absorb the additional costs at this time.”

The move appears to be among the clearest signs yet that the Government’s newly implemented tax on sugary drinks is beginning to flow through to consumers, potentially adding to food and beverage inflation in the months ahead.

The Special Consumption Tax, announced as part of the Government’s revenue measures, is designed to tax beverages based on sugar content in a bid to both raise revenue and discourage excessive sugar consumption.

The notice did not disclose which specific products would be affected or whether similar increases would apply across other trade channels.