Brief

Connecticut is latest state to consider soda tax

Dive Brief:

  • Connecticut lawmakers are considering issuing a tax on sugary drinks, according to Fox 61.
  • The proposed tax would charge consumers a penny per ounce on beverages that contain high-calorie sweeteners such as sugar, high fructose corn syrup, honey and maple syrup. 
  • The money raised would be used to combat childhood health problems and raise awareness of having a balanced diet.

Dive Insight:

Connecticut lawmakers are taking a page from cities such as Philadelphia and Berkeley, Calif., which already collect taxes on soda and other “unhealthy” beverages. In places were taxes are being collected, soda sales have been found to dwindle. While the tax seems to be molding consumer behavior, many working in the soft drink and grocery industries have suffered from fewer sales.

Sales of soda in Philadelphia dropped more than 50% in some stores this year, and that has led to layoffs at soda companies, distribution centers and other businesses directly involved.

Supporters of these taxes argue that the benefits not only help the state generate major revenue, but also encouraged people to choose healthier beverage options.

Connecticut is one of several jurisdictions considering a soda tax in the future. Seattle and Santa Fe are also thinking about it. Until the tax passed in Berkeley, no soda taxed had been imposed. Success in the cities who started taxing the drinks earlier may have inspired the other potential taxes.

Soda already was facing a downward sales trend, having been surpassed in sales last year by bottled water. Taxes like these will only hurt sales in the future.

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Filed Under: Manufacturing Grocery Policy Beverages
Top image credit: lurba