Drawing on lessons from tobacco regulation, Temple University Associate Professor Jennifer Pomeranz has authored an article recommending that state and local governments which opt to impose taxes on sugary beverages consider also adopting measures such as minimum price laws and prohibitions on price discounting and coupons to effectively deter consumption. Titled “Sugary Tax Policy: Lessons Learned from Tobacco,” the article claims that sugary beverage manufacturers can distribute the cost of a tax throughout their product lines, including diet beverages, bottled water and juice, thus making the imposition of minimum prices along with sufficiently high taxes a way to deter manufacturers from circumventing the price increase associated with a sugary beverage tax. Formerly with the Yale Rudd Center for Food Policy and Obesity, Pomeranz also calls for additional research on whether it would be feasible to condition retail licensing on compliance with measures adopted to reduce sugary beverage consumption. See American Journal…
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Voters in Telluride, Colorado, have rejected a proposed 1-cent-per-ounce tax on sugar-sweetened beverages (SSBs) in a 683-313 vote. Proceeds from the tax would have reportedly funded youth health initiatives. According to a media source, “Kick the Can Telluride” was “by far the most controversial question” on the ballot, attracting outside interest from philanthropists and industry lobbying groups bankrolling campaigns for and against the ballot question. Additional details about the Telluride SSB tax campaign appear in Issue 500 of this Update. See Politico.com, November 6, 2013; WatchNewspapers.com, November 7, 2013.
Mexican lawmakers have reportedly approved a 1 peso-per-liter tax (US 23 cents) on sugar-sweetened beverages (SSBs) and an 8 percent tax on junk food. The controversial legislation, which aims to curb rising obesity levels, was approved in a 73-50 vote and is expected to take effect January 1, 2014. According to news sources, Mexico, whose obesity and diabetes rates surpass those of the United States, will be the first major market to tax SSBs, following a handful of other Latin American and European countries. Mexicans reportedly consume more than 700 8-ounce servings of SSBs annually. More details about the legislation appear in Issue 501 of this Update.
Mexico’s lower house has reportedly approved a new fiscal package that would, among other things, tax high-calorie foods—such as chocolate, sweets, pudding, potato chips, and ice cream. The new tax, which complements a planned charge on sugar-sweetened beverages (SSBs) discussed in Issue 497 of this Update, is part of a broader package proposed by President Enrique Peña and is expected to pass in the Senate by the end of the October. According to news sources, the proposed legislation would tax high-calorie foods—defined as those providing 275 calories or more per 100 grams—at 5 percent of the ticketed price and chewing gum at 16 percent. The price of soft drinks would increase by about 8 cents per liter. The move is supported by health experts who note that Mexico has one of the world’s highest rates of obesity, reportedly surpassing the United States, and who applauded higher prices for chips, candy and…
According to media sources, the campaigns for and against a proposed 1-cent per ounce excise tax on all sugar-sweetened beverages (SSBs) sold in Telluride, Colorado, have stepped up their efforts in advance of November voting. Primarily funded by a Houston-based hedge fund, which donated $50,000 to the cause, “Kick the Can Telluride” has reportedly taken its lead from similar campaigns in El Monte, California, and Richmond, Virginia, and urged local voters to back ballot measure 2A, claiming that the estimated annual revenues of $200,000 would support youth health initiatives now funded by three-year U.S. Department of Education Physical Education Program grants. “If passed, the measure would be the first town-level excise tax on sugar-sweetened beverages in the United States,” reports The (Telluride) Watch in an October 16, 2013, article about the debate. Meanwhile, the Colorado Beverage Association has apparently joined with local business owners in countering the proposal with its…
Lawmakers in Mexico have reportedly proposed a tax on all sugar-sweetened beverages in an effort to curb the nation’s obesity and Type 2 diabetes epidemics. According to a news source, the proposed legislation, intended for flavored beverages, concentrates, powders, syrups, and essences or flavor extracts, would apply a tax of one peso (US eight cents) for each liter of sugar-sweetened beverage. Soft drinks sold at movie theaters would evidently be exempt. Consumer advocacy groups support a tax on sugary beverages, but argue that it should be higher to have a greater impact on public health. “It’s good that there would be a tax. We have to acknowledge that. But to have a significant impact on consumption of sugary drinks, assessments show that it should be a 20 percent tax,” said Alejandro Calvillo, head of the consumer watchdog group Consumer Power A.C. Calvillo, who has linked the consumption of sugary drinks…
In response to evidence that British children appear to be getting fatter, the Academy of Medical Royal Colleges in London has reportedly recommended imposing a 20 percent tax on sugary soft drinks for one year as an experiment to see whether it reduces consumption by kids. The group has also called for a ban on TV ads for foods high in saturated fats, sugar and salt until 9 p.m., and has suggested that the government develop “formal recommendations on reducing the proximity of fast food outlets to schools, colleges, leisure centers and other places where children gather.” Meanwhile, the British Soft Drinks Association and other industry groups have publicly opposed such steps, claiming that most soda sold in Britain does not contain added sugar and that a new tax would hurt consumers who can “ill afford it.” The country’s Food and Drink Federation has also contended that existing restrictions on TV ads…
The American Public Health Association’s 141st annual meeting and exposition is slated for November 2-6, 2013, in Boston, Massachusetts. Expected to attract more than 13,000 physicians, researchers, epidemiologists, and related health specialists, and featuring a myriad of presentations, the meeting will include a session on “Regulating for the Public’s Health: Food and Beverages, Drugs, and Emerging Technologies.” Among the presentations during this session are the legal considerations of antibiotics in food animals, focusing on a court order requiring that the Food and Drug Administration (FDA) complete proceedings to withdraw approval of certain antibiotics (presented by Centers for Disease Control and Prevention senior attorney Heather Horton), and “Legal strategies to increase funding and improve the FDA’s authority over food labeling violations and questionable claims” (presented by Rudd Center for Food Policy and Obesity attorney Jennifer Pomeranz). Pomeranz contends that FDA lacks sufficient authority and funding to address misbranded food products and “[t]he…
The California State Senate Committee on Governance and Finance has reportedly passed legislation (S.B. 622) that would impose a 1-cent per fluid ounce tax on sugar-sweetened beverages such as soft drinks, energy drinks, sweet teas, and sports drinks. Sponsored by Sen. Bill Monning (D-Carmel) and passed in a 5-2 vote, the measure aims to generate funds to support the newly created Children’s Health Promotion Fund and finance programs statewide to fight childhood obesity. The bill excludes milk products, and fruit and vegetable juices would be subject to the law only if the fruit or vegetable content in the beverages dropped below 50 percent. “This is the first time this state committee has passed a bill that would place a tax on sugary drinks and the first step toward stemming the epidemic of childhood obesity,” Monning said. “By taxing these products we will be able to implement programs that will assist…
Citing the loss of millions of euros, the Danish government is reportedly abandoning its 80-year tax on soft drinks because consumers are crossing the border to shop in Germany instead. “This decision is the result of concerted efforts to highlight the negative impact of the tax,” said Niels Hald, secretary general of the Danish soft drinks association, Bryggeriforeningen. “In taking this step the Danish government acknowledged the regressive nature of the tax, its negative impact on regional jobs close to the borders and the adverse environmental consequences of border trade.” Removal of the tax will reportedly take place in two stages, with a 50-percent reduction as of July 1, 2013, and full elimination as of January 1, 2014. The decision comes months after the Danish government repealed a similar tax on foods with high concentrations of saturated fat and stopped a proposed sugar tax last year. See UNESDA News Release, April…
