Jennifer Falbe, ScD, MPH
Kristine Madsen, MD, MPH
UC Berkeley School of Public Health
Excise tax on SSB
Distributors
Excise tax on SSB
Distributors
Excise tax on SSB
Distributors
• Regular soda
• Sweetened
tea & coffee
• “Fruit” drinks
• Sports drinks
• Energy drinks
• Powdered,
syrup or
frozen
• Milks
• 100% juice
• Medical
beverages
• Alcoholic
drinks
Excise tax on SSB
Distributors
• Regular soda
• Sweetened
tea & coffee
• “Fruit” drinks
• Sports drinks
• Energy drinks
• Powdered,
syrup or
frozen
 General tax  simple majority
 General tax  simple majority
 76% voted yes
 General tax  simple majority
 76% voted yes
 Panel of experts: to advise on allocating revenues to “reduce the
consumption of [SSBs]…”
https://www.cityofberkeley.info/uploadedFiles/Clerk/Elections/Sugar%20Sweeetened%20Beverage%20Tax
%20%20-%20Full%20Text.pdf
 General tax  simple majority
 76% voted yes
 Panel of experts: to advise on allocating revenues to “reduce the
consumption of [SSBs]…”
 Must have experience in community or school-based food and nutrition
programs, early childhood nutrition education, or researching/evaluating
relevant public health issues/programs; or
 Be a licensed medical practitioner
https://www.cityofberkeley.info/uploadedFiles/Clerk/Elections/Sugar%20Sweeetened%20Beverage%20Tax
%20%20-%20Full%20Text.pdf
 Berkeley Healthy Child Coalition
 Berkeley Healthy Child Coalition
 Cuts to Berkeley’s school
garden/cooking program & Farm
Fresh Choice
 Berkeley Healthy Child Coalition
 Cuts to Berkeley’s school
garden/cooking program & Farm
Fresh Choice
 Support from school board & city
council (unanimous), Berkeley
NAACP, Latinos Unidos de
Berkeley, AHA, etc.
 Most expensive campaign in
Berkeley history (>$2 million by
opposition)
http://www.berkeleyside.com/2015/02/05/around-3-4m-spent-on-berkeley-soda-tax-campaign/
Image: http://storyofstuff.org/wp-content/uploads/2014/11/Berkeley-vs-Big-Soda-300x300.png
 Most expensive campaign in
Berkeley history (>$2 million by
opposition)
 American Beverage Association
http://www.berkeleyside.com/2015/02/05/around-3-4m-spent-on-berkeley-soda-tax-campaign/
Image: http://storyofstuff.org/wp-content/uploads/2014/11/Berkeley-vs-Big-Soda-300x300.png
 $0.02/oz excise tax
 Earmarked for nutrition,
physical activity, and health
programs in public schools,
parks, and elsewhere  2/3rd
majority
 $0.02/oz excise tax
 Earmarked for nutrition,
physical activity, and health
programs in public schools,
parks, and elsewhere  2/3rd
majority
 >$9 million spent by
opposition
 55.6% voted yes  Failed
 Implementation date: January 1, 2015
 Actual: March, 2015  $116,000 collected in April
 Projected: $1.2 million in 1st year
CITIES: Berkeley (intervention), SF, & Oakland (comparison)
1. PRICES: Examine extent to which tax is passed-through to retail
prices.
CITIES: Berkeley (intervention), SF, & Oakland (comparison)
1. PRICES: Examine extent to which tax is passed-through to retail
prices.
Retailers
Distributors
CITIES: Berkeley (intervention), SF, & Oakland (comparison)
1. PRICES: Examine extent to which tax is passed-through to retail
prices.
2. CONSUMPTION: Changes in consumption of SSBs
3. Media analysis of news coverage (Berkeley Media Studies Group)
Retailers
Distributors
 Natural experiment
 Prices: Longitudinal
 Consumption: Repeated cross-sections
 Natural experiment
 Prices: Longitudinal
 Consumption: Repeated cross-sections
 3 cities: San Francisco, Berkeley, & Oakland
 2 lower-income neighborhoods per city
 Matched (to extent possible) on foot traffic and census tract race & income
variables
 Top selling SSBs (soda, tea, coffee, sports, energy, “fruit”), diet
counterparts, water, 100% OJ, and milk
 Top selling SSBs (soda, tea, coffee, sports, energy, “fruit”), diet
counterparts, water, 100% OJ, and milk
 Chain grocery, small grocery, drugstores, convenience stores, liquor
stores, and fast food restaurants in each neighborhood (or the
closest)
 Top selling SSBs (soda, tea, coffee, sports, energy, “fruit”), diet
counterparts, water, 100% OJ, and milk
 Chain grocery, small grocery, drugstores, convenience stores, liquor
stores, and fast food restaurants in each neighborhood (or the
closest)
 Most common single serving size (e.g., 20 oz bottle) in all stores
and common larger sizes (e.g., 2 liters, 12 packs) in a subsample of
stores
Sample of beverages
Berkeley (n=24)
SF & Oakland (n=50)
Mean soda (20 oz)
$1.74
$1.74
Mean diet soda (20 oz)
$1.72
$1.76
Mean water (20 oz)
$1.45
$1.58
Arizona tea (23 oz)
$0.97
$1.00
Gatorade (20 oz)
$1.61
$1.57
Example of complete pass-through
12 *12 ounces *$0.01= $1.44
$7.43-$5.99=$1.44
 Intercept surveys
 Beverage frequency questionnaire
 Intercept surveys
 Beverage frequency questionnaire
 Knowledge & attitudes about SSBs and the tax
 Demographics
 Intercept surveys
 Beverage frequency questionnaire
 Knowledge & attitudes about SSBs and the tax
 Demographics
 Post-survey: perceived changes in purchasing habits
(e.g., changing stores or cities from which they buy
beverages, stocking up)
Consumption: mean (SD) frequency per day
How often do you drink regular soda...
SSBs
Soda
Water
Berkeley
SF
1.2 (2.2)
1.1 (1.7)
0.5 (1.4)
0.4 (0.7)
3.5 (3.2)
4.4 (3.6)
Oakland
1.4 (1.7)
0.5 (0.8)
3.6 (3.0)
Drinking soda & other sugary drinks…can increase your risk for
cavities, obesity, and diabetes (% strongly agree or agree)
100
90
80
70
60
50
40
30
20
10
0
Berkeley
SF
Strongly agree
Oakland
Agree
How likely are you to support…(% responding likely or very likely)
100
90
80
70
60
50
40
30
20
10
0
Policies that reduce access to sugary Policies that reduce advertising of
drinks for kids
sugary drinks to kids
Berkeley
SF
Oakland
A warning label on sugary drinks
about risks of cavities, obesity and
diabetes?
 Lay press (e.g., on Pass-through and
Distributor complaints
 Lay press (e.g., on Pass-through and
Distributor complaints
“Two receipts, left, from…Berkeley, and
right, from …Clayton, show no soft drink
tax was charged on a 1.5 liter Pepsi in both
cities.” (Dan Rosenstrauch/Bay Area News
Group)
http://www.contracostatimes.com/barnidge/ci_28170150/barnidge-if-berkeley-shoppers-dont-have-pay-soda
 Continuing Evaluation: How revenues are used
 Continuing Evaluation: How revenues are used
 Road map for scaling/possible lessons (to be) learned
 Grass roots
 Coalition before launching
 Anticipating reaction of industry
 Branded as Berkeley (us) vs. Big Soda
 Strategy: Earmarking vs. general tax + panel of experts
 Simplifying impact on business owners
Contact: Jen Falbe, ScD, MPH | jfalbe@berkeley.edu