Higher Sugar-Sweetened Beverage Retail Prices After Excise Taxes in Oakland and San Francisco

Author:

Falbe Jennifer1,Lee Matthew M.1,Kaplan Scott1,Rojas Nadia A.1,Ortega Hinojosa Alberto M.1,Madsen Kristine A.1

Affiliation:

1. Jennifer Falbe is with the Human Development and Family Studies Program, Department of Human Ecology, University of California, Davis. At the time of the study, Matthew M. Lee was with the divisions of Community Health Sciences and Epidemiology, University of California, Berkeley School of Public Health. Nadia A. Rojas and Kristine A. Madsen were with the Division of Community Health Sciences, University of California, Berkeley School of Public Health. Scott Kaplan is with the Department of Agricultural...

Abstract

Objectives. To examine how much sugar-sweetened beverage (SSB) excise taxes increased SSB retail prices in Oakland and San Francisco, California. Methods. We collected pretax (April–May 2017) and posttax (April–May 2018) retail prices of SSBs and non-SSBs from 155 stores in Oakland, San Francisco, and comparison cities. We analyzed data using difference-in-differences high-dimensional fixed-effects regressions, weighted by regional beverage sales. Results. Across all beverage sizes, the weighted average price of SSBs increased by 0.92 cents per ounce (95% confidence interval [CI] = 0.28, 1.56) in Oakland and 1.00 cents per ounce (95% CI = 0.35, 1.65) in San Francisco, compared with prices in untaxed cities. The tax did not significantly alter prices of water, 100% juice, or milk of any size examined. Diet soda only, among non-SSBs, exhibited a higher price increase for some sizes in taxed cities. Conclusions. Within 4 to 10 months of implementation, Oakland’s and San Francisco’s SSB excise taxes significantly increased SSB retail prices by approximately the amount of the taxes, a key mechanism for reducing consumption.

Publisher

American Public Health Association

Subject

Public Health, Environmental and Occupational Health

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