For years, soda companies like Coca-Cola and PepsiCo have fought aggressively against taxes targeting sugary drinks. These taxes aim to reduce obesity by making unhealthy beverages less accessible. Despite global success in countries like Mexico and the Philippines, soda companies have worked tirelessly to block such measures in the U.S., particularly in California. A significant turning point came in 2014 when Berkeley passed the nation’s first soda tax, inspiring other cities like San Francisco and Philadelphia to follow suit.
Soda Giants Shift Strategies
After losing battles in progressive cities, soda companies turned their focus to state-level legislation. In 2018, California passed a law banning new local soda taxes for six years, under pressure from beverage industry lobbyists. This move effectively stalled efforts by cities to impose taxes, as any attempts could result in financial penalties. The industry’s ability to leverage political influence in Sacramento highlighted their adaptability and determination.
Santa Cruz Defies the Ban
Now, Santa Cruz is taking a bold stand. Measure Z proposes a two-cent-per-bottle soda tax designed to challenge the 2018 state law. If voters approve the measure, it could lead to a legal showdown over the constitutionality of the ban. The American Beverage Association, using familiar tactics, is already campaigning against the tax, arguing it will harm small businesses and minority consumers. Yet, Santa Cruz officials and activists remain determined to push forward.
The Broader Impact of Soda Taxes
Soda taxes have proven to be more than just financial measures; they represent a cultural shift. In Berkeley, the tax generated millions for health initiatives and helped stigmatize sugary drinks, much like the anti-tobacco movement of the 1980s. Although soda companies have diversified into healthier products, the broader effort to regulate sugary beverages continues to threaten their core business.
A Fight for Local Democracy
For advocates, the fight in Santa Cruz is about more than taxing soda—it’s about reclaiming the right for cities to govern themselves. With limited funding compared to the soda industry’s vast resources, activists are relying on grassroots efforts. Despite the odds, the campaign has ignited a sense of determination among those who see this as a chance to push back against corporate influence. Whether Measure Z succeeds or not, the outcome will have implications for local democracy and public health policy across California.
