Beverage Industry Gears Up for Soft Drink Fight

Lobbying efforts are ramping up to oppose a sugary drink tax in the city of El Monte, California.

July 30, 2012

NEW YORK - Come November, residents of El Monte, Calif., are scheduled to vote on a measure that would add a 1-cent tax on every ounce of "sugar sweetened" drinks, reports Reuters.

Last week city council approved the measure, which Mayor Andre Quintero says will provide much-needed revenue for a city that has a 13.7% unemployment rate and concerns about childhood obesity. "We have long-term challenges," he told the news source. "We need the revenue."

Beverage industry groups, however, are working to kill the effort, as well as a similar proposal in Richmond (Calif.), citing the taxes on sugary drinks as a misguided approach to boosting state coffers.

"Even if those don't pass in November, there could certainly be the potential of future tax threats in other cities," Karen Hanretty, vice-president of public affairs for the American Beverage Association, told the news source.

"This tax is a sign of the times," added Bob Achermann, executive director of the California/Nevada Soft Drink Association. "City governments are looking for revenue. We think this is a misguided approach."

Reuters wrote that with more Americans concerned about obesity, especially in children, "the campaign against soft-drinks is gaining momentum from coast to coast."

Last year a statewide soda tax proposal offered by Democratic Californian Assemblyman Bill Monning failed after strong opposition from a broad coalition including the California Chamber of Commerce and the California Restaurant Association.

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