MANILA - A major manufacturer of food ingredients and chemicals said on Thursday that the proposed excise tax on sugar-sweetened drinks will have minimal effect on its business.

D&L Industries' President and Chief Executive Officer Alvin Lao said the effect of the proposed P10 per liter excise tax on sugar sweetened drinks will have an effect of no "more than 1 percent" on his business.

To mitigate the pass-on costs to his customers, which are mostly business owners, Lao told ANC's The Boss in an exclusive interview that the firm is now seeking alternatives to reduce its use of sugar.

"We do try to pass on higher costs to our customers but there is a balance and this is something we would always be evaluating. We have to be sensitive of our customers' requirements too. If the added on costs is too expensive for them, we could look at alternatives," he said.

Established in 1963, D&L makes customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.

It supplies food ingredients to local branches of Krispy Kreme, Max's, Shakey's, Yellow Cab, and Jollibee. It also manufactures specialty plastics and aerosols.

Lao said he is more concerned about the depreciation of the peso, as this would impact consumer spending in the Philippines. He said the fall in the peso has been so far manageable.

The peso has fallen to 11 year lows in July.