Philadelphia Mayor Jim Kenney announced Thursday that the city’s controversial “Soda Tax” on sugar-sweetened and diet beverage sales raised $5.7 million in its first monthsince going into effect in January, more than double the city’s predictions.
But not everyone is celebrating the 1.5 cent-per-ounce tax. Earlier this week, Philadelphia supermarkets and beverage distributors reported a 30 to 50 percent decline in beverage sales, and Philly.com reports that some distributors have announced layoffs as a result. Canada Dry Delaware Valley, which distributes 20 percent of the city’s soft drinks, told the website sales were down 45 percent and it would lay off 20 percent of its staff, or about 35 jobs, in March.
But city officials are standing by the tax, accusing the soda industry of fear mongering to prevent other cities from adopting similar measures.
“I didn’t think it was possible for the soda industry to be any greedier,” Mayor Kenney said in an emailed statement. “They are so committed to stopping this tax from spreading to other cities, that they are not only passing the tax they should be paying onto their customer, they are actually willing to threaten working men and women’s jobs rather than marginally reduce their seven figure bonuses.”
Indeed, other cities across the U.S. are weighing similar taxes. On Tuesday, the Albuquerque Journal reported that a 2 cent-per-ounce tax in Santa Fe, New Mexico had cleared its first committee. A similar tax in Seattle, Washington is also picking up steam.
Outside of the U.S., the New York Times reported Wednesday that soda sales continued to slow in the second year of Mexico’s soda tax. A study published in Health Affairs showed soft drink sales fell by 5.5 percent in 2014, and fell again by 9.7 percent in 2015.
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