By Katie David J im Kenney, who became Philadelphia’s Mayor in January, scored a major victory that eluded more than 40 U.S. public officials who took on the powerful U.S. soda industry when the city council voted 13-4 to approve to approve a 1.5 cent-per-ounce tax for sweet- ened drinks like sodas. This move by The City of Brotherly made it the largest U.S. city but not the first to have such a tax, Berkeley, California was the first. Similar efforts have been attempted in other larger cities, including several spearheaded by former New York City Mayor, Michael Bloomberg however, these were defeated after intense lobbying from organizations like the American Beverage Association, which opposes the Phil-
adelphia move and represents Coca-Cola and PepsiCo, which are two giants in the beverage industry.
The Philadelphia tax marked a major victory for health advocates who say sugary drinks cause obesity and diabetes. But experts noted those concerns were not the focus for Kenney and other backers of the tax. Kenny played up the benefits of the cash injection from the tax for the city’s depleted funds for social programs. In the first year alone, the tax is projected to raise $91 million, and he pledged to spend funds on public programs such as universal pre-kindergarten. The strategic shift could lend momentum to movements in San Francisco, neighboring Oakland, California, and Boulder, Colorado. Residents of those cities will vote in November on similar taxes, which could deal further blows to a U.S. soft drink industry already hit by declining soda consumption as U.S. soda consumption fell for the 11th straight year in 2015.
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SPOTLIGHT ON BUSINESS • JULY 2016
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