Sales of sugary drinks fell dramatically across five U.S. cities, after they implemented taxes targeting those drinks – and those changes were sustained over time. That’s according to a study published Friday in the journal JAMA Health Forum.
Researchers say the findings provide more evidence that these controversial taxes really do work. A claim the beverage industry disputes.
The cities studied were: Philadelphia, Seattle, San Francisco and Oakland, Calif., and Boulder, Colo. Taxes ranged from 1 to 2 cents per ounce. For a 2-liter bottle of soda, that comes out to between 67 cents to $1.30 extra in taxes.
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Kaplan and his colleagues found that, on average, prices for sugar-sweetened drinks went up by 33.1% and purchases went down by basically the same amount – 33%.
What about sales in cities near these? I doubt people will stop buying it just for the tax, I bet they are willing to go elsewhere to get it for cheap and just by in bulk.
In the first part, findings, it says this:
" In this cross-sectional study, SSB taxes in Boulder, Colorado; Philadelphia, Pennsylvania; Oakland, California; San Francisco, California; and Seattle, Washington, were associated with a 33.1% composite increase in SSB prices (92% pass-through of taxes to consumers) and a 33% reduction in purchase volume, without increasing cross-border purchases"
So there wasn’t an increase in sales volume in other areas (cross borders).
Nice, then good to know!
What I was thinking is people need to be aware of the serous health issues from drinking a lot of soda to ease down on it but I guess any steps that help reduce its consumption are great.
You’re really driving the next city over to get soda pop? Or are you more likely to just drink less and maybe pick some up if you remember?
I know a few people that drive 45+ minutes to get to a Wegmans because it’s an “experience”, so I wouldn’t put it out of reach for someone to go across town lines for soda (and other stuff) if you consume a lot of it.
People be wacky, but on the average most folk won’t do that.
Generally diet or “zero” versions of soda were tax exempt because they dont have sugar, so that’s most likely what people moved to. Still likely a net health win.
I’d bet single serve is a pretty serious portion of soda sales. Restaurants (especially fast food) and gas station/convenience stores sell a lot of soda.
Most of the time when I buy pop it’s for convenience. I can’t remember the last time I went out of my way for it.