Remember when then-New York mayor Michael Bloomberg banned sales of sugary drinks in containers larger than 16 ounces? The idea was that the ban would cause people to drink fewer ounces of sugary drinks overall. (For Richard Posner's take on that issue, go here.)
The New York Court of Appeals ultimately threw out Bloomberg's ban on New York administrative law grounds. But will local soda taxes have a similar effect? Read Ashlee Kieler's article entitled Coca-Cola, Pepsi Will Pull 2-Liters From Philadelphia Over Soda Tax. Here's an excerpt:
The recently enacted sugary drink tax in Philadelphia has not been without controversy, including a soda industry lawsuit, unhappy consumers, and push back from lawmakers. The two biggest names in soda are now making drastic changes to the products they offer — and the people they employ — and blaming it on the tax. The Philadelphia Inquirer reports that in the face of falling sales Pepsi and Coca-Cola are removing larger containers of soda and other sugary drinks from stores and replacing them with smaller versions. The idea behind the switch is that consumers will be more willing to buy smaller containers because they come with less of a tax.
