Sales of sugary drinks plunge 33% in cities taxing those beverages, study finds

An increase in the price of sugar-sweetened beverages [SSB] by about 33.1% led to a drop in consumer purchase volumes of those drinks by a third, according to an article published in the JAMA Health Forum.

The study, led by Scott Kaplan, an assistant professor of economics at the U.S. Naval Academy, looked at taxes in five cities — Boulder, Colorado; Philadelphia; Oakland; Seattle; and San Francisco. It found prices increased and volumes decreased immediately following tax implementation, and both outcomes were sustained in the months after. As of November 2022, eight U.S. jurisdictions and more than 50 countries have implemented some form of sugar-sweetened tax.

Proponents for the tax said it helps raise revenue for area schools or other public services, while at the same time helping consumers cut back on sugar. But big beverage makers have blasted the tax as unnecessary and bad for area retailers, most notably small stores, and workers.

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