Higher Retail Prices of Sugar-Sweetened Beverages 3 Months After Implementation of an Excise Tax in Berkeley, California

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  • Jennifer Falbe
    Jennifer Falbe, Nadia Rojas, and Kristine A. Madsen are with the School of Public Health, University of California, Berkeley. Anna H. Grummon is with the Gillings School of Global Public Health, University of North Carolina, Chapel Hill.
  • Nadia Rojas
    Jennifer Falbe, Nadia Rojas, and Kristine A. Madsen are with the School of Public Health, University of California, Berkeley. Anna H. Grummon is with the Gillings School of Global Public Health, University of North Carolina, Chapel Hill.
  • Anna H. Grummon
    Jennifer Falbe, Nadia Rojas, and Kristine A. Madsen are with the School of Public Health, University of California, Berkeley. Anna H. Grummon is with the Gillings School of Global Public Health, University of North Carolina, Chapel Hill.
  • Kristine A. Madsen
    Jennifer Falbe, Nadia Rojas, and Kristine A. Madsen are with the School of Public Health, University of California, Berkeley. Anna H. Grummon is with the Gillings School of Global Public Health, University of North Carolina, Chapel Hill.

Description

<jats:p> Objectives. We assessed the short-term ability to increase retail prices of the first US 1-cent-per-ounce excise tax on the distribution of sugar-sweetened beverages (SSBs), which was implemented in March 2015 by Berkeley, California. </jats:p><jats:p> Methods. In 2014 and 2015, we examined pre- to posttax price changes of SSBs and non-SSBs in a variety of retailers in Berkeley and in the comparison cities Oakland and San Francisco, California. We examined price changes by beverage, brand, size, and retailer type. </jats:p><jats:p> Results. For smaller beverages (≤ 33.8 oz), price increases (cents/oz) in Berkeley relative to those in comparison cities were 0.69 (95% confidence interval [CI] = 0.36, 1.03) for soda, 0.47 (95% CI = 0.08, 0.87) for fruit-flavored beverages, and 0.47 (95% CI = 0.25, 0.69) for SSBs overall. For 2-liter bottles and multipacks of soda, relative price increases were 0.46 (95% CI = 0.03, 0.89) and 0.49 (95% CI = 0.21, 0.77). We observed no relative price increases for nontaxed beverages overall. </jats:p><jats:p> Conclusions. Approximately 3 months after the tax was implemented, SSB retail prices increased more in Berkeley than in nearby cities, marking a step in the causal pathway between the tax and reduced SSB consumption. </jats:p>

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