Prepared Foods logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Prepared Foods logo
  • TRENDS
    • Prepared Foods The Year Ahead
    • Innovation Month
    • *Sustainability*
  • PRODUCTS
    • Bakery
    • Beverages
    • Breakfast, Cereals & Bars
    • Candy
    • Cannabis
    • Dairy
    • Meals & Sides
    • Meat, Poultry & Seafood
    • Sauces & Marinades
    • Snacks & Appetizers
    • Soups
  • INGREDIENTS
    • Antioxidants & Nutritionals
    • Colorings
    • Dietary Fiber
    • Emulsifiers, Fat & Oils
    • Flavors, Seasonings, Spices
    • Flours, Grains, & Pasta
    • Fruits, Vegetables and Nuts
    • Gums & Starches
    • Phosphates & Acidulants
    • *Proteins*
    • Sweeteners
  • FORMULATION
    • Allergens & Intolerance
    • Authentic & Ethnic
    • Cost Reduction
    • Fat Reduction
    • Gluten Free
    • *Immunity*
    • *Natural / Organic*
    • *Plant Based & Vegetarian*
    • R&D Lab Tech / QA-QC / Food Safety
    • Shelf Stability
    • *Sugar Reduction*
  • BETTER FOR YOU
    • Functional New Products
    • Functional Ingredients
    • Functional Benefits
  • FOOD MASTER
  • MEDIA
    • Podcasts
    • Videos
    • Infographics
    • Play With Your Food Game
    • Webinars
  • EVENTS
    • Spirit of Innovation Awards
    • Industry Events
  • MORE
    • Favorite Products Poll
    • First Person Q&A
    • Sponsor Insights
    • Store
  • EMAG
    • eMagazine
    • Archive Issues
    • Advertise
  • SIGN UP!
Breaking NewsBeverages

Benefits of a Beverage Tax

January 24, 2012
January 24/Washington/American Medical News -- A nationwide penny-per-ounce excise tax on sugar-sweetened beverages would reduce consumption of the beverages by 15% and save an estimated $17 billion in medical costs over 10 years, says a study in the January Health Affairs.

During the same period, researchers project that the tax would mean 867,000 fewer obese adults between 25 and 64 years old, resulting in 95,000 fewer cases of coronary heart disease, 8,000 fewer strokes and 26,000 fewer premature deaths. New cases of type 2 diabetes would be reduced by 2.6% as more people opted for milk, juice, water and other beverages, the study said.

"The [study] shows that even modest reductions in sugar-sweetened beverage consumption could prevent thousands of cases of cardiovascular disease and diabetes, and save billions of dollars in medical costs," said James S. Marks, MD, MPH, senior vice president and director of the Robert Wood Johnson Foundation Health Group, which helped fund the study with the American Heart Assn.

Forty states have sales taxes on soda, but they are too low to impact sales, said Dr. Y. Claire Wang, lead study author and assistant professor at Columbia University's Mailman School of Public Health in New York. California's tax is the highest at 7.3%. In many states, profits from the taxes are used to benefit health-related programs and low-income families.

"This has been on the political agenda in a lot of state legislatures over the last few years," she said.

Unlike state sales taxes, an excise tax on beverage makers would affect the price on the front end, rather than at the cash register after the consumer has made the decision to purchase the product, Dr. Wang said.

Americans Against Food Taxes opposes such taxes, saying the country cannot tax its way to good health. "A tax on juice drinks and soda would further squeeze hardworking families already struggling to pay their bills and keep their health coverage," Susan Neely, president and CEO of the American Beverage Assn., said in a statement on the Americans Against Food Taxes website. "With the economic downturn, there could not be a worse time to ask them to pay more for the simple pleasures they enjoy."

The organization -- a coalition of concerned citizens, beverage and food manufacturers, grocers associations, restaurant chains and other businesses -- did not respond to requests for comments on the Health Affairs study.

Getting an excise tax on sugar-sweetened beverages passed at the national level would be difficult, Dr. Wang said. The beverage industry spent nearly $13 million to oppose an excise tax on sugar-sweetened beverages in New York state in 2010. But Dr. Wang said she thinks public sentiment may be shifting as more people learn about the nation's high health care costs.

"Eventually, the public needs to see which part [of the debate] is to protect profit and which part is what policymakers should be paying attention to," she said.

 From the January 24, 2012, Prepared Foods' Daily News.

KEYWORDS: Beverage

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Women in beverge isle

    Ingredient Demonization May Not Drive Consumer Behavior

    While tracking cultural conversations around demonized...
    2025 Food and Beverage Trends
    By: Prepared Foods Editorial Staff
  • Bubs Candy Packages

    Sweden’s Viral Candy Brand BUBS Lands in US Retail Nationwide

    TikTok videos of BUB's unique chewy-meets-marshmallow...
    Candy
    By: Prepared Foods Editorial Staff
  • Innovation Month Logo Orange

    Introducing Innovation Month: A Deep Dive into the Future of Food & Beverage

    The next wave of food innovation is here. Dive into the...
    Innovation Month
    By: Prepared Foods Editorial Staff
Manage My Account
  • eMagazine Subscription
  • Newsletters
  • Manage My Preferences
  • Online Registration
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Prepared Foods audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Prepared Foods or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  •  A close-up of a fruit branch on a cherry tree.
    Sponsored byU.S. Tart Cherries

    When Provenance Meets Performance: The Case for U.S.-Grown Montmorency Tart Cherries

Popular Stories

Buckwalter OceanSpray CEO

Ocean Spray Names Abigail Buckwalter CEO

SFA Fancy Bodega

Top 10 Product Development Trends From the 2026 Summer Fancy Food Show

Bimbo Bakeries USA  logo

Bimbo Bakeries USA Sets Timeline for Clean Label Reformulation

PF Webinar sponsored by FoodChain: Signals to Shelf: Turning Consumer Insight into Executable Innovation

Events

June 18, 2025

Master the Art of Plant-Based Dairy

ON DEMAND: Whether you're in R&D, formulation, or innovation, this session will provide enzyme-driven insights to improve your plant-based dairy portfolio.

July 22, 2025

Boost Flavour and Functionality in Plant-Based Beverages With Bio-Based Solutions

ON DEMAND: Demand for plant-based beverages is rising, driven by health, environmental, and dietary trends. Yet, challenges around taste, texture, stability, and nutrition remain.

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products

CHECK OUT OUR NEW POWER TRENDS

Immunity Logo
Natural & Organic Logo
Plant Based Logo
Protein Logo
Sugar Reduction Logo Sustainability Logo

Related Articles

  • Benefits of a High-protein Breakfast

    See More
  • Benefits of Sugar Beet Fiber Ingredient

    See More
  • Benefits of Tea

    See More

Related Products

See More Products
  • bigfood.jpg

    Big Food: Critical perspectives on the global growth of the food and beverage industry

  • trends.jpg

    Trends in Beverage Packaging 1st Edition

  • small-occ.jpg

    Occupational Health and Safety in the Food and Beverage Industry

See More Products
×

Unlock the Future of Food and Beverage Innovation

Are you a leader in research & development? Stay ahead of the curve with Prepared Foods, the premier source of information and insights for today's trend leaders and taste-makers in food and beverage manufacturing.

JOIN TODAY
  • Resources
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Join
  • Sign Up Today
    • Create Account
    • eMagazine
    • Newsletters
    • Customer Service
    • Manage Preferences
  • Services
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • Stay Connected
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing