As it has in other locales, the soda industry is digging in to fight a proposed sweetened beverage tax, which would add a penny-per-ounce to the cost of sugar- and artificially sweetened drinks if approved by Cook County commissioners next month.
And as they are in cities like San Francisco and Boulder, Colo., local officials are making the case for public health, pointing to mounting evidence linking sugar-sweetened beverages to obesity, diabetes and other health conditions.
But some 920,000 Cook County residents who receive food stamp benefits wouldn't pay any more than they do now, calling into question how effective the tax will be at reducing consumption in some of Chicago's poorest neighborhoods with high rates of obesity and diabetes. Under federal law, purchases made with benefits from the Supplemental Nutrition Assistance Program, or SNAP, are exempt from state and local taxes.
Cook County Board President Toni Preckwinkle has been forthright on her primary motivation: The county needs new revenue to fill a growing budget deficit, stave off hundreds of layoffs in public safety and prevent the further erosion of health and safety services provided by the county.
"I make no apologies for this. I think it's an effective way to raise revenues, and it has real good health consequences," Preckwinkle said at an annual City Club appearance to discuss her budget proposal.
The county's effort arrives as consumers across the nation continue to look toward healthier options, and away from soda. Last year, 48.7 billion liters of carbonated soft drinks were sold in the U.S., down from 52.9 billion in 2010 — a decrease of almost 8 percent, according to Euromonitor International sales data.
To varying degrees of success, companies like Coca-Cola and PepsiCo have tried to fight that decline by launching products with less sugar and by diversifying their portfolios to include non-soda options like water, juice and tea. Brands like Odwalla, Honest Tea and Naked all belong to large pop corporations now.
Still, Big Soda isn't going quietly. After spending millions of dollars opposing similar taxes in Philadelphia and Berkeley, Calif., in recent years, the American Beverage Association — supported by a local coalition of retailers, manufacturers and distributors — is revving up its Cook County campaign and putting the heat on commissioners.
"This is not about public health. It's really about them filling their budget gap," said Claudia Rodriguez, acting executive director of the Illinois Beverage Association and spokeswoman for the No Cook County Beverage Tax Coalition.
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