The Beverage Industry Against Soda Taxes – Mom n’ Pop Shops, “Bribes”

It seems like soda tax propositions are popping up like mushrooms after spring showers across the country. And everywhere they do, the beverage industry is there, like a wild boar, ready to stomp them down.

Last week, Philadelphia mayor Michael Nutter wanted to raise $77 million annually from a tax on sugary soft drinks. A local bottler and multimillionaire offered a bribe donation of $10M to help promote health and recreation programs in the next 2 years. City council shot down the tax regardless.

And now the Washington DC city council is proposing a 1 cent tax per fluid ounce. CalorieLab tells of the novel approach by the American Beverage Association:

the “grassroots” tactic adopted by the beverage industry: Recruiting local businesses to be the public face of their campaign. Expect to see this become a standard play by Big Soda wherever the soda tax rears its head. Ed & Betty’s Corner Grocery gets a lot more sympathy in the average household … [rather] than Pepsico, Inc.

In all likelihood, this proposed tax will not make it. Consumer sentiment is already against paying more for anything.

On the other hand, there is no doubt that sugary drinks are a top contributor to our nation’s obesity epidemic. The beverage industry has externalized all the health related costs in order to bring consumers a “cheap” drink.

(Cheap is relative though. Tap water is much cheaper than soda. And healthier too.)

So how to get the beverage industry to shoulder the responsibility? It’s a major challenge. We have suggested in the past the implementation of a calorie offset solution, but there could be other ways to reduce the financial incentive of manufacturing sugary drinks, and shifting efforts by industry towards other areas.

What to do at the supermarket:

Skip the beverage aisles. A family of 4 can save $500 a year by switching from soft drinks to tap water. And several pounds per person. Not to mention the number of plastic bottles not contaminating landfills.

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  • Robert

    This is ridiculous. Why is soda alone being targeted? This ignores how much sugar is in all of the other drinks available.

  • Jason

    I agree. Who’s going to determine what qualifies as “soda”? Are fruit juices exempt? Sweetened teas? Unsweetened teas? Drinks with HFCS only? How about naturally sweetened drinks (i.e. sugar)? Seems like a giant can of worms.

    Want to do something about the artificially low cost of sweeteners like HFCS that soda contain (thus helping to make sodas even cheaper)? Quit subsidizing corn. Subsidize nutritious fruits and vegetables or better yet, organic farming or small farmers.

  • http://www.livingitupcornfree.com kc

    @Jason
    I agree with cutting out subsidies on these horrible GMO crops. It isn’t just the sweeteners made from them, but all of the harmful additives that are the problem. Taxing sodas just leaves the parents of America feeling smug about avoiding HFCS while feeding their children fruit drinks, deli meats, canned pasta, frozen chicken nuggets, sweetened yogurt and candy. Cut out the subsidies and all of those unnatural and unhealthy foods will be cost prohibitive. The same goes for CAFO meat and industrial eggs. The real price of foods will be evident and people will choose to give their food dollars to the local farmers actually growing food instead of the industrial pseudo-food machine.

  • S. Spacek

    The Beverage industry has fought off states efforts–especially in US Southern states–to implement beverage container deposits, which has (for over 40 years) reduced collected litter volumes in states with such legislation (current approx. 11) by as much as 80 percent.
    US States each spend an average of over $5 million a year eradicating litter from public properties (roads, trails, lakes, rivers).
    Studies conducted by state governments (regardless of their geographic region) consistently show males under age 25 being prime profiled trash litterers/dumpers.
    Besides harming landscapes, dumping/littering breeds insects and diseases, and KILLS over 1,100 Americans each year in related motor vehicle accidents
    –S. Spacek, American State Litter Scorecard