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Soda taxes made sugary drink sales fall and prices rise in cities that tried them, study finds

Sales of sugar-sweetened beverages fell by about a third in five U.S. cities after taxes on sugar-sweetened beverages began, according to a study released Friday.

A study published in JAMA Health Forum found that cities' soda taxes pushed up the price of sugar-sweetened beverages (SSBs) and continued to reduce sales, just as policymakers intended.

Researchers say their findings show that a soda tax is an effective policy tool to help consumers reduce their sugar intake, but the drinks industry disagrees.

The five U.S. cities studied were Boulder, Colorado; Philadelphia; Oakland, California. Seattle and San Francisco. Taxes levied on sugar-sweetened beverages in these cities ranged from 1 to 2 cents per ounce. A 2-liter bottle of soda can add as much as $1.36 in tax to the price.

For the first time, a major medical group calls for a tax on carbonated and sugary drinks.

A customer walks past a shelf of soft drinks at Berkeley Bowl West Market on November 6, 2014 in Berkeley, California. (Paul Chin/San Francisco Chronicle via Getty Images/Getty Images)

Previous studies on the impact of soda taxes compared cities with the tax to control cities without the tax, the researchers said. The study differs in that it analyzes the combined effects of SSB taxes in multiple cities to paint a picture of what could happen if soda taxes became more widespread, said lead author and U.S. Naval Academy economist Professor Scott Kaplan said in an interview with NPR.

“The SSB excise tax was associated with a consistent and significant decrease in SSB purchases in five taxable U.S. cities after the tax-induced price change,” the study said.

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Ingredients listed on soda bottles (including sugar)

On June 10, 2015, sugar is listed as an ingredient on a bottle of soda displayed in a food truck cooler in San Francisco. (Justin Sullivan/Getty Images/Getty Images)

“Results show that shelf prices for SSB products increased by an average of 33.1% (1.3 cents per ounce) in the years following the introduction of the SSB tax, corresponding to a 92% price pass-through rate from distributors to consumers. Sales volume decreased by $33.0% over the same period, with no evidence of any change in cross-border shopping in tax-exempt contiguous areas. ”

The authors found that previous research has shown that increasing prices by 15 to 20 percent or reducing sugar-sweetened beverage consumption can lead to significant health benefits, including reductions in heart disease, stroke, diabetes, and obesity. It was pointed out that it is known that

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Sugar-sweetened beverage display shows the sugar content of a large soda cup

Volunteers set up a display showing the sugar content of carbonated drinks before a rally to launch a campaign to tax sugary drinks in San Francisco on February 1, 2014. (Paul Chin/San Francisco Chronicle via Getty Images/Getty Images)

“This study estimates a 33.1% increase in price and a corresponding 33.0% decrease in quantity, suggesting that the results are at least as strong in health benefits as previously found. “There is,” the authors write.

Additionally, the researchers said a soda tax could prove cost-effective by reducing medical costs to treat illnesses caused by excessive sugar intake.

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But the drinks industry opposes “discriminatory” taxes on its products. The American Beverage Association, an industry group, says taxes limit consumer choice and, over time, free market forces will force companies to offer consumers reduced-sugar and no-sugar options. He said he urged him to do so.

“In reality, taxes don't make people healthier; they just make them poorer,” the ABA says on its website. “That's why we are working with national and local public health agencies on a comprehensive effort to reduce sugar consumption where it is needed most.”

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