Surprise: Philly Soda Tax Causes Loss Of Sales, People To Be Laid Off

Remember when the city of Philadelphia, home to the odious Eagles and Flyers, enacted a tax on “sugary” drinks? How’s that working out? About as well as carbon taxes

Soda companies, supermarkets report 30-50 pct. sales drop from soda tax

The hell you say!

Two months into the city’s sweetened-beverage tax, supermarkets and distributors are reporting a 30 percent to 50 percent drop in beverage sales and are planning for layoffs.

One of the city’s largest distributors says it will cut 20 percent of its workforce in March, and an owner of six ShopRite stores in Philadelphia says he expects to shed 300 workers this spring. (snip)

Bob Brockway, chief operating officer of Canada Dry Delaware Valley, which distributes about 20 percent of the city’s soft drinks, said sales were down 45 percent in Philadelphia. The company will lay off 20 percent of its workforce the first week in March.

Social Justice Warrior induced unemployment

In response, the city questioned the legitimacy of the early figures and predicted that customers responding to the initial sticker shock by shopping outside the city would return.

Of course, the stores will already have reduced their workforce. How much is going outside of the city? Some reports show a 20% spike. Companies in the city are going outside of the city to make their purchases, just like citizens, in order to lower costs. And, as long as the tax remains in place, they will continue to go outside the city.

Mayor Kenney harshly rebuked reports of coming layoffs late Tuesday night.

“I didn’t think it was possible for the soda industry to be any greedier,” Kenney said in an emailed statement. “ … They are so committed to stopping this tax from spreading to other cities, that they are not only passing the tax they should be paying onto their customer, they are actually willing to threaten working men and women’s jobs rather than marginally reduce their seven figure bonuses.”

Got that? The city enacted a tax, pretty much over the objections of the citizens and those in business, who predicted exactly what would happen. But, hey, let’s blame the companies, which always pass on increased costs of doing business.

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6 Responses to “Surprise: Philly Soda Tax Causes Loss Of Sales, People To Be Laid Off”

  1. Rev.Hoagie® says:

    Bring a Philly guy I just laugh. They keep electing fascist democrat tax and spenders and wonder why the city is going broke. Kenney a hoot. He passes a tax that hurts the poorest the most to keep the illicit money coming in and it’s the soda companies who are greedy. That’s the kind od logic I’d look for from an idiot like Jeffery, not somebody in actual office. But hey, they’re all fascists so what would you expect?

  2. Jeffery says:

    A sugared drink tax is intended to reduce consumption. Just as a cigarette tax reduces smoking. Just as a carbon tax would reduce consumption of fossil fuels. Just as increasing the cost of contraception reduces the use of contraception and increases the demand of abortion. It’s a simple market-based concept.

    • Rev.Hoagie® says:

      It’s intended to make money. That’s what taxes are for, to bring in revenue. Or did you miss that class? If you want to “reduce consumption” make it illegal, but don’t try and tax the poor and call it morality. Once again the left lies.

      So you’re saying increasing the cost of abortion will reduce the demand for abortion? Then in order to reduce abortions they should cost $20k by law. It’s a simple market-based concept. Good idea, Jeffery.

  3. People in Philly are not necessarily consuming less sugary drinks, they are merely buying them outside city limits. Less mobile, inner city poor are probably paying the tax, but at the expense of having more disposable income for necessities.

  4. Jeffery says:


    You are partly right about taxes. They raise money and modify behavior. You’re surely familiar with the concept of a Pigovian tax to address negative externalities related to market failures. Think of tobacco taxes that help pay for the societal health costs of smoking, or a carbon tax to address the damage from CO2 emissions.

    And of course increasing the cost of abortions would reduce the number of legal abortions. So yes, the Republicans governing MO could add a $20,000 tax to reduce the number of legal abortions, although the courts would almost certainly step in.

  5. Stosh says:

    “passing the tax they should be paying onto their customer”

    The idiot mayor goes a long was into proving any and all corporate taxes are actually paid by the consumer.

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