The impact of the Oakland sugar-sweetened beverage tax on price promotions of sugar-sweetened and alternative beverages

Osama M El-Sayed and Lisa M Powell

PLOS ONE, 2023, vol. 18, issue 6, 1-15

Abstract: The goal of sugar-sweetened beverage (SSB) taxes is to raise the prices of SSBs to decrease consumption. Price promotions play an important role in the sales of SSBs and could potentially be used by manufacturers to weaken the impact of such taxes. The purpose of this study is to determine how price promotions changed after the introduction of the 2017 Oakland SSB tax. A difference-in-differences study design was used to compare changes in prices and the prevalence and amount of price promotions for beverages in Oakland, California, relative to Sacramento, California, using two different datasets. Nielsen Retail Scanner data included price promotions for beverages sold and store audit data included price promotions offered by retailers. Changes were analyzed for SSBs, noncalorically sweetened beverages, and unsweetened beverages. After the implementation of the tax, the prevalence of price promotions for SSBs did not change significantly in Oakland relative to the comparison site of Sacramento. However, the depth of price promotions increased by an estimated 0.35 cents per ounce (P

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0285956

DOI: 10.1371/journal.pone.0285956

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