The increasing rates of worldwide obesity and diet-related diseases, plus the rising numbers of health conscious consumers has prompted policy makers, regulators and consumer guardians to adopt package labelling that is easier to understand and interpret. Research finds that consumer preference and purchase behaviour towards beverage products has changed drastically in the last decade (Beckett, 2018; Newhart, 2019). Consumers have become increasingly health conscious and aware of labels placed on the front-of-pack of food and beverage products. Due to this emphasis on front-of-pack labelling, and the increasing role of colour in drawing attention and breaking through clutter (Spence & Velasco, 2018; Spence, 2018), this research study investigates the impact of beverage sugar-labelling on the package perception (interpretation of labels) and the concomitant purchase intention of consumers. Further, this study will provide an enhanced and detailed understanding of consumers’ behavioural intention towards sugar labels on beverages, presented on red and green colour strips on the front of canned sugar and no sugar drinks. Moreover, this research looks into how the different colour bands (red and green background colours) placed behind the word “sugar” or “no sugar” on the front-of-pack label of a canned beverage product, affects the purchase intent of consumers. This study hypothesizes that the impacted perception is likely to affect consumer health perception and ultimately their purchase intention. The study also contributes to the current debate on sugar tax, health-conscious consumers and obesity. It further extends the existing literature on the use of colour on labels and helps marketers understand the implications of placing red and green colours behind labels on beverages.