by Marion Nestle

Currently browsing posts about: Taxes

Oct 20 2015

Uh oh. Big Soda lobbyists weaken Mexican soda tax

Yesterday, I received this ALERT from health advocates in Mexico:

Big Soda negotiates behind doors with PRI to reduce Mexican SSB tax to 5% for drinks with 5 grams of added sugars per 100ml– Public health advocates denounce conflict of interest and speak out in defense of the tax

Yesterday Mexico’s Congressional Finance Committee proposed and voted in favor of an alarming measure to reduce the rate of the current 10% sugar-sweetened beverage tax to 5% on products with 5 grams of added sugar or less per 100 milliliters. The measure was pushed through committee vote with a reservation from only one political party and moves on to a vote in the lower house within the next 24-48 hours. Beverages with more than 5 grams of added sugar per 100 milliliters would continue to be taxed at 10% (1 peso per liter).

A columnist in one of Mexico’s most prominent dailies indicates that this negotiation between the FEMSA Coca-Cola bottling company and the PRI political party (current administration and majority vote holder in Congress and Senate) came about after attempts at a food and beverage industry negotiation with the PRI, seeking to reduce Mexico’s SSB and snack taxes. The columnist says Bimbo (&the food industry) was eventually excluded from this negotiation to focus on an attainable goal of reducing the SSB tax. (See column in Spanish: )

After several recent press conferences and an act in Congress “to trap” industry lobby mosquitos (Oct 6), continuing to call for an increase to a 20% SSB tax in accordance with national and international expert recommendations, and warning the public and decision makers of industry lobby, today civil society advocates –the Nutritional Health Alliance and ContraPESO– published a full page ad in Mexico’s most important daily asking whether legislators are on the side of public health or soda industry interests and calling on them not to cede to the industry lobby.

In the ad (see translation below and image attached), advocates warn that the most currently consumed 600 ml sugary drink on the Mexican market that has 5 grams of sugar per 100 milliliters contains 30 grams of sugar, above the WHO’s new guidelines for healthy living.

The language of the initiative to reduce the tax recognizes the SSB tax as a public health measure and the progress made, yet proceeds to reduce the tax far below the expert recommended rate, representating a setback to Mexico’s landmark tax.

FYI: Although Mexico’s lower house of Congress (Chamber of Deputies) holds authority over final budget decisions on income, Mexican legislative process entails that the budget package, once voted in the lower house, passes to the Senate for review and a vote, before passing back to the lower house for final approval.

Tweet indignation over industry back-door negotiation and support for the current tax and need for an increased tax: #ImpuestoAlRefresco
Press interviews: contact
If you or your association can emit a declaration or letter of support, send to:

PUBLIC HEALTH ADVOCATES IN MEXICO – Ad in Reforma newspapers OCT 19, 2015 – IN DEFENSE OF MEXICAN SSB TAX. Translation:
Members of Congress:

Have you let yourselves be bitten by the sugar-sweetened beverage lobby mosquitos?:

Do you serve soda industry or public health interests?

– The tax on sugar-sweetened beverages is 10% (1 peso) and not 20% (2 pesos) per liter as recommended by international and national organizations.

– The proposal to lower the tax to 5% to beverages with 5 grams or less of sugar per 100 milliliters acquiesces to soda industry interests, which are the parties mainly responsible for the collapse of public health in Mexico.

– The most consumed 600 milliliter drink in Mexico has 5 grams of sugar for every 100 milliliters contains 30 grams of sugar (6 spoonfuls).

– This surpasses the 25 grams (5 spoonfuls) that the World Health Organization establishes as a maximum amount of added sugars per day in order to preserve one’s health. (1)

– Sugar is not an essential nutrient and there is solid evidence showing that its consumption is harmful to health, contributing to overweight, obesity and caries, serious public health problems in Mexico.

Sugar-sweetened beverages kill more Mexicans a year than organized crime. (2)

Whose side are you on?


Show that you work to protect the public health of the Mexican population and not Big Soda’s profits.

We demand that the special tax be preserved and increased to 20% for ALL SUGAR-SWEETENED BEVERAGES, as recommended by international and national organizations.

Mar 5 2015

Court confirms constitutionality of the Mexican soda tax

Last week the Mexican Supreme Court passed down its judgment on a writ of unconstitutionality (amparo) filed against the soda tax that went into effect in January 2014.

This unanimous judgment:

Documents (in Spanish):


Nov 5 2014

Yesterday’s elections: plenty of good news for the food movement

This was a big election for the food movement:

  • Soda taxes in Berkeley and San Francisco
  • GMO initiatives in Colorado, Oregon, and Maui
  • The reelection of particularly fierce opponents of food stamps
  • Minimum wage laws

Soda taxes

Hats off to Helena Bottemiller Evich of Politico ProAg who stayed up half the night to file her story at 3:00 a.m.  As usual, she cuts right to the chase.  Here’s her comment on the Berkeley win:

Voters approved Measure D, a penny-per-ounce tax, by a three-to-one margin after a bitter campaign battle, with the beverage industry spending more than $2.1 million to oppose the initiative. The pro-tax campaign was bolstered by more than $650,000 from former New York City Mayor Michael Bloomberg.

The vote for the tax in Berkeley was a whopping 75%–a clear, unambiguous win.

The vote in San Francisco passed the tax by a majority—54.5%—but a 2/3 vote was required because the measure specified where the funds would to.

And here’s some commentary

Dana Woldow, who has covered these elections closely on the website Beyond Chron, has this to say about the Berkeley win.

Xavier Morales, executive director of the Latino Coalition for a Healthy California, told me that entities across the state have just been waiting to hear what happens in Berkeley and SF to advance their own local plans for a tax, and that there are ongoing discussions at the state level regarding the feasibility of a soda tax bill to help reduce diabetes, heart disease and stroke. “Other cities in the Pacific Northwest have also been watching both San Francisco and Berkeley with great interest,” he said.

Sara Soka, campaign manager for Berkeley vs Big Soda (the Yes on D campaign)says:

What happens in Berkeley doesn’t stay in Berkeley…Berkeley’s public school system was one of the first to voluntarily desegregate in 1968. It’s led in public school food policy, smoke-free areas in restaurants and bars, curb cuts for wheelchairs.  All these positive changes are now mainstream.

Michael Jacobson, director of Center for Science in the Public Interest, a long-time supporter of soda taxes, says:

Berkeley voters have shown it can be done.  A community’s health can trump Big Soda’s insatiable appetite for profit…This is a historic victory for public health and a historic defeat for the increasingly disreputable soda industry. Coca-Cola, PepsiCo, and the American Beverage Association can no longer count on spending their way to victory.

San Francisco’s Choose Health SF

This isn’t about one soda tax. This is about a national movement that was kicked off tonight, and we are proud to have raised the conversation about the health impacts of soda and sugary beverages, and exposed the beverage industry’s deceptive tactics.

GMO labeling and no-plant initiatives

At a cost estimated at more than $60 million, the GMO industry and its food industry friends managed to defeat labeling measures in Oregon and Colorado.

In Maui, voters passed an initiative to block cultivation of GMO materials on Maui, Molokai and Lanai until cleared by environmental and safety studies.

The Information Technology & Innovation Foundation released this statement quoting Val Giddings of the Biotechnology Industry Organization:

The effort was a misleading, fear-based campaign to put a “scarlet letter” on genetically modified foods. “We commend the citizens of Colorado for protecting the environmental benefits, food abundance and lower prices that have been delivered by seeds and crops improved through biotechnology.”

Reelection campaigns

These have to do with representatives whose positions on food stamps are especially awful.   The position of one, Florida Republican Steve Southerland, was so dreadful that he was singled out by Food Policy Action for targeting.

During discussions of the farm bill, Southerland led attempts to cut food stamps and force beneficiaries to work.  Food Policy Action’s Tom Colicchio and Ken Cook issued a statement:

This is a big win for food advocates and Florida families. Congressman Southerland has repeatedly made policy choices that are harmful to families and small farmers. Today, we proved that voters care about food issues, and they will hold their elected officials accountable on Election Day.

 New York City Coalition Against Hunger notes these election results:

  • Steve Southerland (Florida 2), arguably the greatest Congressional opponent of SNAP/Food Stamps, lost his re-election bid.
  • PA Governor Tom Corbett who – soon after becoming Governor – wanted to slash Food Stamps benefits – lost big.
  • In contrast, Thad Cochran, who is perhaps the GOP’s strongest supporter of SNAP/Food Stamps, won re-election to the Senate by a wide margin in Mississippi.

It quotes executive director Joel Berg: “Cutting SNAP and other safety net programs is bad policy, bad morals, and, as last night’s results show, bad politics.”

Minimum Wage Laws
Voters in four red states (SD, AR, AK, NE) passed raises in the minimum wage by wide margins, even though they defeated Democratic candidates.

My comments on all of this

  • To the question, will soda taxes reduce consumption, I would answer: the soda industry thinks so to the tune of $11 million in San Francisco and Berkeley.
  • To the question, will GMO labeling hurt the GMO and food industries, I would answer: the industries think so to the tune of about $100 million so far.
  • These expenditures—and the bullying that go with them—are sufficient to explain the voter turnout.

If you haven’t seen Nightline’s exposé of the soda industry’s tactics, now might be a good time to take a look.

And celebrate!



Jul 31 2014

Rep. Rosa de Lauro introduces the SWEET soda tax act!

Yesterday, the fabulous Representative Rosa DeLauro (Dem_CT) introduced the Sugar-Sweetened Beverages Tax Act of 2014 (SWEET Act).  Here’s a quick summary of the bill. The SWEET Act (you have to love the name) would put an excise tax of one cent per teaspoon of sugars (a teaspoon is about 4 grams). The bill is clearly aimed at sugary drinks, which account for about half of total sugar intake.  According to the 2010 Dietary Guidelines (page 29),

  • Sodas, energy, and sports drinks account for 35.7% of total sugars
  • Fruit drinks—a category that does not include 100% juices—account for another 10.5%.
  • Sugar-sweetened teas account for 3.5%.

The tax ought to raise about $10 billion a year, and is earmarked for programs to combat soda-related disease. It also ought to further reduce consumption of sugary drinks, as is already happening in Mexico. If you would like to endorse this legislation, contact in Representative DeLauro’s office. References


Nov 6 2013

In food politics too, money talks

Can money buy elections?  Apparently so.

Yesterday’s election results indicate that the GMO-labeling initiative in Washington state and the soda tax initiative in Telluride, CO both failed.

Washington’s I-522

According to USA Today, the defeat cost opponents $22 million.  All of that—except $550—came from out of state.

The top five contributors were the Grocery Manufacturers Association, Monsanto, DuPont Pioneer, Dow AgroSciences and Bayer CropScience.

But the Grocery Manufacturers Association was required to list its contributors.  The top five?  PepsiCo, Nestlé (no relation), Coca-Cola, General Mills, ConAgra  at about a million each when you add it all up.

USA Today reports:

Food industry ads claimed that the initiative would raise food prices. Labels would mislead consumers into thinking that products that contain genetically engineered ingredients are “somehow different, unsafe or unhealthy,” said Brian Kennedy of the Grocery Manufacturers Association, a food industry group based in Washington, D.C.

The Yes on 522 campaigns emphasized consumers right to know what’s in their food.

But PoliticoPro points out that because votes are mailed in, more than 600,000 votes may still be left to count.

The food and biotech industries used their considerable war chest to make ad buys across the state, pointing out all of the products that would not be covered under the measure — such as cheese, beer, restaurant food and even, they claimed, pet food — and pushing the message that the bill is misleading and would considerably raise food prices. They said the law would hurt Washington’s farm families.

As I told USA Today, sooner or later, one of these is going to pass. At some point the industry is going to get tired of pouring this kind of money into these campaigns and will beg for labeling, which is what should have happened in the first place.

The Telluride soda tax

Telluride is a small town, so the amounts are much smaller.

According to ProPolitico, the Colorado Beverage Association installed an onsite lobbyist to generate opposition to the measure through meetings and an Internet site.

The largest donors to the opposition campaign were a Texas billionaire who owns a second home in Telluride ($55,000), and the the local and national beverage associations. were the largest contributors to the anti-tax campaign, giving $20,000 and $55,000 respectively.

Taxes, of course, are never popular even when intended for public health purposes, as this one was.

Soda taxes too, will pass eventually.

Patience and fortitude.

Addition: Here’s the Washington State vote as of this morning.

Oct 6 2013

Soda tax controversy goes international

My monthly first Sunday Food Matters column in the San Francisco Chronicle:

Q: I hear that the Mexican government wants to increase taxes on sodas as a way to fight diabetes. The soda industry persuaded voters to defeat soda taxes in Richmond and El Monte last year. Won’t it do the same in Mexico?

A: It might. I’m just back from a lecture trip to Mexico City where I heard plenty about the proposed soda tax and the industry’s response to it.

Last month, the Mexican government proposed an additional soda tax of one peso (about 8 cents) per liter. The idea is to raise $1.5 million per year while discouraging soda consumption, thereby helping to reduce the country’s high prevalence of obesity and Type 2 diabetes.

Mexicans drink lots of soda. By some estimates, average per capita consumption is 50 gallons a year, the highest in the world. It’s no coincidence that more than 70 percent of Mexicans are overweight or obese, and around 15 percent have Type 2 diabetes, a prevalence that terrifies health officials. This type of diabetes, if undiagnosed and untreated, can lead to blindness or foot amputations.

‘Nutrition transition’

Mexico is a classic example of a country in “nutrition transition.” As the economy improves, people increasingly buy high-calorie ready-made foods, put on weight, and raise their risk for diabetes. Meanwhile, the poorer segments of the population continue to experience high levels of stunting, iron-deficiency anemia and vitamin A deficiency.

This makes obesity a relatively new problem in Mexico, one widely understood to result from the introduction of processed foods – especially sodas – into the Mexican food market.

I could easily see how deeply sodas are embedded in Mexico’s food culture. Sodas were advertised and available everywhere. And they come in enormous three-liter bottles that cost less than the price of bottled water – only 17 pesos ($1.35) each. Clean water is not always available, making sodas the easy choice.

Sodas are cheap because Mexico grows its own sugarcane and sells it at market prices. We, however, artificially support the higher price of U.S. sugar through tariffs and quotas. That’s why our sodas are made with high fructose corn syrup. We subsidize corn production so corn syprup costs less than sugar.

Some people think cane sugar tastes better than high fructose corn syrup, although controlled taste tests don’t always back this up. It’s ironic that U.S. supermarkets now carry, at highly inflated prices, Mexican Coca-Cola sweetened with cane sugar.

Industry efforts to defeat the Mexican soda tax have been ferocious, just as they were in Richmond and El Monte last year. Producers argue that if the tax really does decrease consumption, it will cause hundreds of thousands of jobs to be lost.

I saw a newspaper advertisement from the Mexican Beverage Association that not only attacked the science relating soft drinks to obesity, but extolled the health benefits of sodas: “Sugar is nutritious; it’s a carbohydrate. Carbohydrates are essential for life. Sugar is indispensable for the brain. Soft drinks hydrate and bring energy.”

An ad from the sugarcane industry also threatened job losses – “The tax will generate unemployment and discourage productivity and investment” – and noted that workers and the poor will bear most of its burden.

The big questions

As with any such initiative, the big questions are whether the tax is likely to reduce soda consumption, obesity and diabetes, and whether the revenue will be used for widely beneficial public health purposes. Mexico’s Congress will have to address these questions when it votes on the tax in the weeks ahead.

In the meantime, a coalition of consumer and health groups, in part funded by Bloomberg Philanthropies, has been putting posters in subway stations that illustrate the amounts of sugar in soft drinks. The groups are actively advocating for the soda tax and for using its funds to provide free potable water in schools – something that does not now exist. But TV stations have refused to carry their ads for fear of losing soda advertisers.

Like their U.S. colleagues, Mexican public health authorities are searching for effective ways to reverse obesity trends. Sugary drinks are an easy target. Taxing them might happen despite industry opposition – especially if the funds are earmarked for clean water.

Editor’s notesMarion Nestle will discuss her new book, “Eat, Drink, Vote: An Illustrated Guide to Food Politics,” with Narsai David at the Commonwealth Club on Oct. 15 at 6 p.m., and at Book Passage in Corte Madera on Oct. 19 at 11 a.m.

She is also receiving the James Beard Foundation Leadership Award for her writing about how science and public policy influence what we eat. The award ceremonies are Oct. 21 at the Hearst Tower in New York.

Marion Nestle is the author of “Eat, Drink, Vote,” “Why Calories Count: From Science to Politics,” “Food Politics” and “What to Eat,” among other books. She is a professor in the nutrition, food studies and public health department at New York University, and blogs at E-mail:

Sep 23 2013

Pepsi, Mexican style

In Mexico, you can get most kinds of sodas in 3 liter bottles.  At 17 pesos ($1.33) for 3 liters, Pepsi is cheaper than water.


Note the 3-peso penalty if you buy two 1.5-liter bottles.  

It’s hardly a coincidence that Mexico has high soda consumption and high rates of obesity.  Taxing sodas seems like a particularly good idea in this situation.

Dec 2 2012

The defeat of California’s soda tax initiatives: lessons learned

My monthly (first Sunday) Food Matters column for the San Francisco Chronicle deals with the aftermath of the defeat of two California soda tax ballot initiatives.

Q: As one who campaigned for the soda tax in Richmond, I’m so discouraged by the millions spent by the soda industry to defeat it there and in El Monte (Los Angeles County). I don’t see how anyone without that kind of money can do anything to reverse obesity and diabetes.

A: Patience. These things take time.

Losing the soda tax campaigns taught health advocates some important lessons, not least that money buys votes. But it also taught that appeals to voter concerns about higher prices, job losses and personal autonomy are more effective than appeals based solely on health considerations.

Nobody likes taxes, and soda taxes are regressive, meaning that they impose a greater burden on the poor. Although the poor drink more sodas and have higher rates of obesity, and are likely to derive the most benefit from drinking less soda, taxes are still a hard sell.

Because dietary choices seem so personal, the influence of the food marketing environment on personal choices is not intuitively obvious. Everyone “knows” that larger food portions have more calories, but that doesn’t stop anyone from eating more calories when confronted with supersize foods or drinks.

The public health route

That’s why public health approaches work better than just telling people to eat less or eat better. The most effective measures change the environment of food choice by encouraging better options with price subsidies or portion-size caps and discouraging unhealthier choices, which is where taxes, bans on toys, and restrictions on marketing come in.

Such measures aim to make healthy choices the default. Most people are happy to live with the default option.

Food companies want their products to be the default. They will always oppose measures that might reduce sales, and they have no lack of resources to do so.

How might public health advocates counter such opposition?

Community approach

The Richmond example suggests the need for public health approaches that are community-based. This means going into communities and asking residents how they view the causes and consequences of their own health problems, and what they think should be done to fix those problems.

Communities set the goals. Advocates help communities achieve them.

This approach is fine in theory, but difficult in practice. Nobody makes food choices in a vacuum. Soda and fast food companies market their products to low-income and minority groups, and make sure their products are inexpensive, readily available and ubiquitously advertised.

To gain traction, food and beverage companies support the activities of community groups, sponsor playgrounds, and place their brand logos on everything they can. My favorite recent example is Coca-Cola’s $3 million gift to Chicago to fund an educational campaign to counter obesity and diabetes (no, I did not make this up).

Community-based campaigns not only can focus on the health consequences of poor diets but also can demonstrate to residents just how food companies put corporate health above public health and engage low-income communities in achieving corporate goals.

Teaching how the food marketing environment works should stimulate plenty of questions about why healthier foods aren’t more widely available in communities – and at affordable prices. It should raise questions about why school lunches aren’t better, and why soda advertising pervades athletic facilities. It should get people thinking about what food and beverage companies are actually doing in low-income communities.

Community-based public health should encourage residents to want to change their food environment.

It should get them thinking about wanting stores to provide healthier foods. Or they might want a farmers’ market, community gardens, better school food, and cooking lessons for their kids.

A method that works

These things really can help change eating behavior. The American Heart Association recently published a massive review – with rankings – of environmental interventions aimed at improving personal diets, physical activity levels, and smoking habits (See Circulation 2012; 126:1514-1563).

The review cites evidence for strategies to improve diets such as media campaigns, price subsidies, school meals and gardens, and restrictions on marketing, as well as taxes as portion caps. Some of these interventions are expensive, but others are not.

A review like this gives advocates plenty to work with.

Soda tax initiatives will not be going away. Neither will other such measures. Community leaders across the country will be continuing to introduce them as a means to reduce health care costs and to generate needed revenue for health-promoting activities.

It’s worth starting now to engage communities in efforts to improve their own health. Next time, engaged communities may be ready to vote for health over corporate interests.

Grassroots efforts take time. It’s too soon to be discouraged.

Marion Nestle is the author of “Why Calories Count: From Science to Politics,” as well as “Food Politics” and “What to Eat,” among other books. She is a professor in the nutrition, food studies and public health department at New York University, and blogs at E-mail: 

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