PepsiCo Pulls Soft Drinks from Philly Shelves

Citing the city’s new soda tax, Pepsi is pulling 2-liter and 12-pack products from grocery store shelves.

March 23, 2017

PHILADELPHIA – The Associated Press reports that PepsiCo is pulling 2-liters and 12-pack products from Philadelphia grocery store shelves, citing the city's new tax on sweetened drinks.

According to the AP, PepsiCo said in a statement that the company wants to offer products and package sizes that working families can better afford.

Philadelphia’s 1.5-cent-per-ounce tax on sweetened and diet beverages is imposed at the distributor level. When fully passed onto the consumer, the added costs amount to $1.44 on a six-packs of 16-ounce bottles.

Per the AP, PepsiCo’s decision affects soft drink brands including Pepsi, Mountain Dew, Gatorade and Lipton Iced Tea drinks.

Philadelphia Mayor Jim Kenney's office told the AP that the industry had been trending toward smaller sizes well before the tax passed. Earlier this month, Pepsi cited the beverage tax when announcing layoffs of 80 to 100 workers at distribution plants that serve the city.

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