Higher Retail Prices of Sugar-Sweetened Beverages 3 Months After Implementation of an Excise Tax in Berkeley, California

Abstract

Approximately 3 months after the tax was implemented, SSB retail prices increased more in Berkeley than in nearby cities, marking a step in the causal pathway between the tax and reduced SSB consumption.

Sugar-Sweetened Beverages and Children's Health

“…Nixon and colleagues (108) note the similarities in the way the tobacco industry fought regulation. In March 2015, Berkeley, California, passed the first US excise tax of one cent per ounce of SSB, resulting in increased prices of SSBs compared with those sold in Oakland and San Francisco, whereas nontaxed beverages had no such price increases (46).…”

Policy options for healthier retail food environments in city-regions

“…In 2014, Berkeley, CA, was the first municipal jurisdiction in North America to adopt a tax on sugar-sweetened beverages. 22 It has been argued that revenues generated by such approaches could be earmarked for public health purposes.…”

Improving Diet in Low-Income Neighborhoods: Leveraging the Food Environment for Change

“…and consumption are not yet available, however there have already been early examinations of price changes. [201][202][203] One study of SSB prices before and after implementation in Berkeley and San Francisco found pass-through rates of approximately 22% across the two major soda brands and common sizes -that is, distributors or retailers absorbed the increased cost or spread the increased cost across other products such that consumers only saw 22% of the 1 cent/oz tax three months after implementation. 201 Another study that also tracked prices through three months post-implementation, but at a smaller set of stores across Berkeley, Oakland, and San Francisco, found pass-through rates for soda, fruit-flavored drinks, and sweetened teas of 69%, 47%, and 32%, respectively.…”

“…201 Another study that also tracked prices through three months post-implementation, but at a smaller set of stores across Berkeley, Oakland, and San Francisco, found pass-through rates for soda, fruit-flavored drinks, and sweetened teas of 69%, 47%, and 32%, respectively. 202 A third report, for which interim findings from two studies were presented, determined that SSB prices from a random selection of stores in Berkeley had increased by more than 1 cent/oz in large and small chain supermarkets and chain gas stations (but not independent small markets or independent gas stations) and by 0.4 cents/oz in pharmacies four months after implementation. 203 These researchers also examined prices from retail scanner data for two large grocery chains operating in the Bay Area and found prices increased by more than 1 cent/oz in the fourth, fifth, and sixth months post-implementation.…”