If people do decrease sugar-sweetened beverage consumption, won’t that hurt beverage companies, possibly causing lay-offs?
The proposed tax is expected to lead to a 10-15% reduction in sugar-sweetened beverage consumption; this would not be sufficient to cause significantly decreased production and lay-offs. Some people will replace sugar-sweetened beverages with alternative beverages, many of which are produced by the same beverage companies. Thus, there may be an increase in demand for healthier beverages, such as water, non-caloric flavored seltzers, and unsweetened ice tea, which would partially compensate for the reduced demand for sugar-sweetened beverages.
