Soda taxes may spread if voters check
ballots in California, Colorado
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[November 04, 2016]
By Chris Prentice
NEW YORK (Reuters) - As Americans vote for
a new president on Tuesday, hundreds of thousands of voters in
California's Bay Area and Boulder, Colorado, will also decide whether
they want levies on sugary drinks, another step toward making soda taxes
a norm.
Three cities in California - San Francisco, Berkeley and Albany - and
Boulder, Colorado, have become the latest battleground in a so-called
"War on Sugar" that centers on sweetened drinks. Over 800,00 voters will
decide on ballot measures to introduce taxes of 1 or 2 cents per ounce
on soft drinks on Nov. 9, just weeks after the World Health Organization
(WHO) advocated that governments should impose these types of levies.
The push for taxes on sugar and sodas has gathered momentum this year,
as officials and health advocates seek ways to stem health epidemics of
diabetes and obesity. On most ballots, the tax would not apply to diet
sodas but does affect some juices, sports drinks and other beverages
with added sugar.
Reducing consumption of sugary drinks is seen as a relatively easy way
for people to cut down on added sugars, recommended by groups including
the WHO, the U.S. Food and Drug Administration (FDA) and the American
Heart Association.
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The trend has prompted worry and millions of dollars in advertising and
lobbying campaigns from beverage industry giants like PepsiCo Inc and
Coca-Cola Co that are facing declining sales of their flagship products
in markets including the United States.
So far this year, Britain and Philadelphia decided to introduce levies
on soft drinks and countries including South Africa have proposed
similar measures. This follows a decision by Mexico to introduce such a
tax in 2014. The broadening of these efforts raises the prospect of
establishing them as the norm after numerous previous attempts failed,
advocates say.
"The more these taxes pass, the more they will be considered in other
jurisdictions," said Jim O'Hara, health promotion policy director with
the Center for Science in the Public Interest in Washington.
SODA ON THE DEFENSIVE
Both Pepsi and Coke have are increasing options for less sugary drinks,
responding to changing consumer tastes. Consumption of carbonated soft
drinks hit a 30-year low in the United States last year, as water sales
continued their climb, according to Beverage Digest.
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![](../images/110416pics/news_e11.jpg)
A sign for the "Yes on D" campaign in the window of the Measure D
election headquarters in Berkeley, California November 3, 2014.
REUTERS/Robert Galbraith
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The majority of California voters support government measure to
reduce consumption of sugary beverages, according to a Field Poll
released in February. In San Francisco, a 2014 vote for a similar
tax failed to pass a two-thirds vote, but is expected by many to
succeed this time around, as only a simple majority is required. The
votes in the other cities are expected by both advocates and
opponents alike to be tighter.
Fighting for survival, Big Soda has been outspending advocates of
the measure, but not by much. Industry spending to oppose the taxes
this year in the Bay Area alone has swelled to around $27 million to
$28 million, versus around some $19 million by advocates, according
to estimates from both sides.
Billionaires including Michael Bloomberg have joined the fray,
contributing $15 million to pro-tax campaigns in the Bay Area. The
former mayor of New York waged an unsuccessful campaign in the city
to cut soda sizes in 2014.
Opponents say the tax, which would be levied on distributors, is
unfairly targeted at drinks makers and could raise food costs beyond
just soda.
"In effect, this is a grocery tax. It could be spread out on many
items" by distributors, said Joe Arellano, spokesman for the "No
Grocery Tax" campaigns in California's Bay area.
In the California cities, the measures would introduce a
penny-per-ounce tax. In Boulder, it would be 2 cents.
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It is unclear how long-lasting the impacts of such taxes would be,
but some early research on such taxes in nearby Berkeley and in
Mexico suggest partial pass-through of the taxes from businesses to
customers and an impact on consumption.
(Reporting by Chris Prentice; Editing by Lisa Shumaker)
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