Bleich, Sara N.

Herring, Bradley

Lawman, Hannah G.

LeVasseur, Michael T.

Mitra, Nandita

Peterhans, Ana

Roberto, Christina A.

English

ScholarlyCommons@Penn

University of PennsylvaniaScholarlyCommonsResearch Briefs Leonard Davis Institute of Health Economics5-14-2019Impact of Sweetened Beverage Tax on ChainRetailers in PhiladelphiaChristina A. RobertoHannah G. LawmanMichael T. LeVasseurNandita MitraAna PeterhansSee next page for additional authorsFollow this and additional works at: https://repository.upenn.edu/ldi_researchbriefsThis paper is posted at ScholarlyCommons. https://repository.upenn.edu/ldi_researchbriefs/57For more information, please contact repository@pobox.upenn.edu.Roberto, Christina A.; Lawman, Hannah G.; LeVasseur, Michael T.; Mitra, Nandita; Peterhans, Ana; Herring, Bradley; and Bleich, SaraN.. Impact of Sweetened Beverage Tax on Chain Retailers in Philadelphia. LDI Research Briefs. 2019; No. 57.Impact of Sweetened Beverage Tax on Chain Retailers in PhiladelphiaKeywordsbeverage tax, tax, PhiladelphiaLicenseThis work is licensed under a Creative Commons Attribution-No Derivative Works 4.0 License.Author(s)Christina A. Roberto, Hannah G. Lawman, Michael T. LeVasseur, Nandita Mitra, Ana Peterhans, BradleyHerring, and Sara N. BleichThis brief is available at ScholarlyCommons: https://repository.upenn.edu/ldi_researchbriefs/57IMPACT OF SWEETENED BEVERAGE TAX ON CHAIN RETAILERS IN PHILADELPHIAChristina A. Roberto, Hannah G. Lawman, Michael T. LeVasseur, Nandita Mitra, Ana Peterhans, Bradley Herring, Sara N. BleichJournal of the American Medical Association – published May 14, 2019COLONIAL PENN CENTER   |   3641 LOCUST WALK   |   PHILADELPHIA, PA 19104-6218   |   LDI.UPENN.EDU   |   P: 215-898-5611   |   F: 215-898-0229   |    @PENNLDIKEY FINDINGSSTUDY DESIGN   Analyzed beverage prices and sales data one year before and after the tax at 291 chain supermarkets, mass merchandisers (e.g., Target), and pharmacies•   Compared changes in beverage prices and sales in Philadelphia to changes  in Baltimore•   Looked at changes in sales of sweetened beverages in Pennsylvania zip codes bordering Philadelphia to account for people crossing city lines to avoid the tax  Calculated amount of tax passed on to consumers through higher retail pricesOn January 1, 2017, Philadelphia became the second U.S. city to tax the distribution of sweetened beverages. The 1.5 cent per ounce tax applies to the distribution of sugar- and artificially sweetened beverages. Similar taxes have been passed in several other cities and are being considered at the state level. The authors examined the effect of the tax on beverage prices and sales at chain retail stores in Philadelphia.The Philadelphia sweetened beverage tax led to a 38% reduction in taxed ounces sold after one year. That’s equivalent to 83 million fewer cans of soda sold.POLICY IMPLICATIONS  This is one of the largest studies to date demonstrating that a beverage tax in a large U.S. city substantially reduced purchases of sweetened drinks.  Overconsumption of sweetened drinks is linked to health problems like obesity and type 2 diabetes. These results suggest beverage taxes are a promising policy tool to improve population health.  SUPERMARKETSMASS MERCHANDISERS PHARMACIESHow did taxed beverage prices change?0.65 cents/ounce(43% OF TAX)0.87 cents/ounce(58% OF TAX)1.56 cents/ounce(104% OF TAX)How did taxed beverage sales change? 59% 40% 13%STORE108 million fewer cans sold in PhiladelphiaThe effect of the tax varied by store type.. . . offset by 25 million more cans sold in  neighboring counties

Impact of Sweetened Beverage Tax on Chain Retailers in Philadelphia

https://repository.upenn.edu/cgi/viewcontent.cgi?article=1057&amp;context=ldi_researchbriefs

Impact of Sweetened Beverage Tax on Chain Retailers in Philadelphia

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