Surprise: Philly Soda Tax Causes Loss Of Sales, People To Be Laid Off

Remember when the city of Philadelphia, home to the odious Eagles and Flyers, enacted a tax on “sugary” drinks? How’s that working out? About as well as carbon taxes

Soda companies, supermarkets report 30-50 pct. sales drop from soda tax

The hell you say!

Two months into the city’s sweetened-beverage tax, supermarkets and distributors are reporting a 30 percent to 50 percent drop in beverage sales and are planning for layoffs.

One of the city’s largest distributors says it will cut 20 percent of its workforce in March, and an owner of six ShopRite stores in Philadelphia says he expects to shed 300 workers this spring. (snip)

Bob Brockway, chief operating officer of Canada Dry Delaware Valley, which distributes about 20 percent of the city’s soft drinks, said sales were down 45 percent in Philadelphia. The company will lay off 20 percent of its workforce the first week in March.

Social Justice Warrior induced unemployment

In response, the city questioned the legitimacy of the early figures and predicted that customers responding to the initial sticker shock by shopping outside the city would return.

Of course, the stores will already have reduced their workforce. How much is going outside of the city? Some reports show a 20% spike. Companies in the city are going outside of the city to make their purchases, just like citizens, in order to lower costs. And, as long as the tax remains in place, they will continue to go outside the city.

Mayor Kenney harshly rebuked reports of coming layoffs late Tuesday night.

“I didn’t think it was possible for the soda industry to be any greedier,” Kenney said in an emailed statement. “ … They are so committed to stopping this tax from spreading to other cities, that they are not only passing the tax they should be paying onto their customer, they are actually willing to threaten working men and women’s jobs rather than marginally reduce their seven figure bonuses.”

Got that? The city enacted a tax, pretty much over the objections of the citizens and those in business, who predicted exactly what would happen. But, hey, let’s blame the companies, which always pass on increased costs of doing business.