San Francisco voters to decide on soda tax


San Francisco's city board is putting the final touches on a proposal for a $0.02 per ounce tax on soda products and energy drinks.

The measure goes in front of voters next November where it will need a two-thirds majority to pass.

Related stocks: KO, PEP, DPS, MNST.

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Comments (22)
  • IgnisFatuus
    , contributor
    Comments (2673) | Send Message
     
    Not too sure this will pass. Probably more than half the population there imbibes energy drinks, if not a soda now and then, and needing a 2/3 majority to pass seems to be a pretty high hurdle.
    5 Feb 2014, 10:05 AM Reply Like
  • chopchop0
    , contributor
    Comments (5066) | Send Message
     
    never know with SF. They already banned happy meal toys and plastic bags
    5 Feb 2014, 10:11 AM Reply Like
  • IgnisFatuus
    , contributor
    Comments (2673) | Send Message
     
    I think the Energy Drink addon will be the killer....20 sometings and the Silicon Valley types live for their Red Bull and Rockstar Energy drinks.
    5 Feb 2014, 10:26 AM Reply Like
  • slcUTAH
    , contributor
    Comments (542) | Send Message
     
    As a KO share holder I think this will pass but I doubt it will have any affect on Coke's sales. Coke has so many products in their portfolio. Not worried.

     

    -Cheers.
    5 Feb 2014, 03:51 PM Reply Like
  • SteveTheHawk
    , contributor
    Comments (2170) | Send Message
     
    Hard to say what a city like SF will do. Here in the midwest, I'm thinking that proposal would be laughed off the ballot. Hoping it fails in SF as well. The whole thing seems ridiculous. If this becomes a prevalent tax though, it's hard to say what impact it will have on KO and PEP.
    5 Feb 2014, 10:11 AM Reply Like
  • Sum02006
    , contributor
    Comments (455) | Send Message
     
    I don't think it will do anything to KO or PEP. The tax is small enough that an ordinary consumer isn't really going to feel it. In my opinion, it's an excuse for the city to jump on a trending bandwagon to drum up some more tax revenues to throw at city programs.
    5 Feb 2014, 01:31 PM Reply Like
  • SteveTheHawk
    , contributor
    Comments (2170) | Send Message
     
    Well, yeah. They're always looking to generate more tax revenue. But, they have to try and put a happy face on it by linking it to a "health issue".

     

    I also suspect that you are correct as to having zero impact on KO and PEP.
    5 Feb 2014, 02:03 PM Reply Like
  • nfantis
    , contributor
    Comments (86) | Send Message
     
    You call that small? That's $1.35 tax on a 2 liter bottle.
    5 Feb 2014, 02:05 PM Reply Like
  • SteveTheHawk
    , contributor
    Comments (2170) | Send Message
     
    nfantis:
    I suppose you have a point there. Anyone that buys a lot of soda (large number of kids for example), could get dinged by that tax. I suspect though that many would simply drive across city borders and load up on soda at the closest non-SF store.
    5 Feb 2014, 03:04 PM Reply Like
  • TRHanson
    , contributor
    Comments (175) | Send Message
     
    I think that soda will feel this much harder than energy drinks. $1.25 for a 20 oz soda where I am. That would add 40c to the price, about 33%. Where I work, they sell Rockstar for $2 for a 16 oz. That would be 32c or about 16%. Also have Monster for $2.50 for a 16 oz. 12.8% increase there.
    5 Feb 2014, 04:29 PM Reply Like
  • Ta0
    , contributor
    Comments (493) | Send Message
     
    nfantis, that's bad news for SF. Unfortunately, anything that passes in SF will eventually migrate outwards to other nearby cities. It may get to the point where we will have to make carbonated drinks at home to escape such a high tax...unless they bagged that avenue too.
    5 Feb 2014, 08:36 PM Reply Like
  • indexfundsbeeyotch
    , contributor
    Comments (9) | Send Message
     
    Not sure why liberals always single out soda. Anything with a lot of sugar will make you fat and give you type 2 diabetes eventually, carbonation is not really a factor.
    5 Feb 2014, 11:02 AM Reply Like
  • TRHanson
    , contributor
    Comments (175) | Send Message
     
    It's probably because soda is consumed in much greater quantities than candy or chocolate cake.
    5 Feb 2014, 11:04 AM Reply Like
  • BlueSeas
    , contributor
    Comments (246) | Send Message
     
    You better check on that candy cake stuff. Check out how many carbs are in that plate of pasta, which is just one step from glucose. One Coke Classic has about 27g Carbs while one cup of spaghetti has about 43g carbs. So which pushes you on the path to Type 2 faster????
    So SF needs to get a clue if it's really about health and not just another excuse to tax.
    5 Feb 2014, 12:53 PM Reply Like
  • civ-e
    , contributor
    Comments (663) | Send Message
     
    i try to look for any beverages that might have less sugar than soda in the shopping market aisles, and there really doesn't exist any except for water.
    5 Feb 2014, 01:15 PM Reply Like
  • haunted
    , contributor
    Comments (118) | Send Message
     
    Hi BlueSeas,
    The coke classic raises your blood sugar more. Pastas have a lower glycemic index (probably due to the fiber present in the pasta) than sugar water. It's actually considered a reasonable meal choice for diabetics. Pastas provide fiber, protein and some vitamens also, but Coke Classic is truly empty calories.

     

    That said, if I were local, I'd consider voting for this measure. I drink LOTS of diet soda, and I am long KO, but I would consider voting for it. I see it as an opportunity to milk tourists and business travelers for revenue, something like a hotel or rental car tax. They will pay the price no matter what.

     

    It's also like a lottery ticket: I enjoy a lottery ticket and a Diet coke, but I don't need these things and (unlike Obamacare) no one is forcing me to buy them.

     

    I am opposed, however, to tying the revenue to new programs. So, I'd have to weigh carefully.

     

    We live in interesting times. Happy investing!
    5 Feb 2014, 06:36 PM Reply Like
  • BlueSeas
    , contributor
    Comments (246) | Send Message
     
    Haunted: Pasta has very little fiber, that cup of spaghetti is less then 3g. Sure Pasta is better and the carbs will convert slower in to blood sugar but it still becomes blood sugar and jacks the insulin response. And only 8g of protein(the reason your hunger an hour later after eating pasta:)
    I'm long KO and MCD and I use neither. But then that's just me I care about what I eat. I eat real food, very little near zero processed.
    I'm just saying this is simple a SF revenue play with health as cover.
    5 Feb 2014, 07:17 PM Reply Like
  • jw4golf
    , contributor
    Comments (339) | Send Message
     
    liberal trash need more of your money to spend on aids, homeless, addicts...whatever.
    5 Feb 2014, 11:51 AM Reply Like
  • benbeliver
    , contributor
    Comment (1) | Send Message
     
    Are you kidding me…………$.24 tax on a 123 oz. soda?!?!?!?

     

    What will our "leaders" come up with next………maybe a tax on every breath you take!!!!!!!
    5 Feb 2014, 01:50 PM Reply Like
  • slcUTAH
    , contributor
    Comments (542) | Send Message
     
    That's the master plan.

     

    -Cheers.
    5 Feb 2014, 03:55 PM Reply Like
  • TRHanson
    , contributor
    Comments (175) | Send Message
     
    I can't help but think of the Beatles song "Tax Man"

     

    If you drive a car, I'll tax the street,
    If you try to sit, I'll tax your seat.
    If you get too cold I'll tax the heat,
    If you take a walk, I'll tax your feet.
    5 Feb 2014, 04:33 PM Reply Like
  • Sfwealthcreater
    , contributor
    Comments (19) | Send Message
     
    This is a joke why tax sodas it seem like politicians just want more money
    5 Feb 2014, 09:37 PM Reply Like
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