Tufton invites Seprod CEO for talks after sugar tax concerns force temporary layoffs

Minister of Health and Wellness Dr Christopher Tufton has invited Seprod Group Chief Executive Officer and Managing Director Richard Pandohie for discussions following a report that the company is temporarily laying off 141 workers, partly because of the impact of the sugar tax.

Responding to The Gleaner report published on Friday, Tufton wrote on X that Seprod could consider reformulating its beverages to reduce their sugar content.

“Maybe consider reformulation to put less sugar; would be good for sales; you could get in the schools for example; as it would be for our consuming public. Happy for a dialogue,” Tufton said.

Pandohie told The Gleaner on Friday that Seprod had decided to temporarily lay off 141 workers for three weeks at one of its factories, on a rotation basis, following a decline in sales and a significant build-up of inventory.

READ: https://jamaica-gleaner.com/article/news/20260919/sugar-tax-weak-sales-cited-seprod-temporarily-lays-141-workers

He said several factors were contributing to the lower demand, including tight economic conditions, the impact on the hotel industry, the slow recovery of retailers in areas such as Hanover and the additional cost of sugar-based juices resulting from the sugar tax.

“It was not an easy decision and one that we tried to avoid, but it makes no sense piling up inventory and end up dumping them because they expire,” Pandohie said.

“We didn’t even lay off one person in COVID, so you know this is painful for me. But we will get through this,” he added.

The sugar tax, announced by Finance Minister Fayval Williams during her Budget presentation earlier this year, applies to beverages based on their added sugar content. Beverages with zero added sugar do not incur the tax, while drinks containing added sugar are taxed proportionally by weight.

The layoffs are scheduled to take effect on Monday.

Tufton’s invitation to Pandohie comes as the Government continues to promote measures aimed at reducing sugar consumption and encouraging healthier food and beverage choices.

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