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Beverage‑tax testimony: retailers, distributors and unions say sales, routes and jobs declined
Summary
Grocery associations, bottlers and the Teamsters told the commission the 2017 soda/beverage tax drove sharp declines in city beverage sales and led to job and route losses; industry witnesses urged repeal or substantial reassessment and a less regressive revenue approach.
Multiple witnesses described the sweetened beverage tax implemented in 2017 as having severe local economic impacts. Mike Howells of the Pennsylvania Food Merchants Association told the commission the industry measured "an almost 47% decrease in beverage sales within Philadelphia" after the tax and argued the levy reduced store foot traffic and pressured margins.
Distributors and bottlers offered similar testimony. Reginald Goins of Hahnikman Companies said his company saw a 46% drop in beverage sales in the Philadelphia area and that about 40% of employees working city routes were redeployed outside the city. Danny Grace of Teamsters Local 830 said drivers and warehouse employees experienced route cuts, layoffs and major pay reductions in some cases.
Industry witnesses described the tax as regressive, disproportionately borne by lower‑income residents who cannot easily shop outside city limits, and noted nearby suburban sales gains as evidence of cross‑border shopping. "We have lost 46% of all beverage sales in the Philadelphia area," Goins said.
Speakers who defended the tax or proposed alternatives included advocates who urged targeted relief instead of repeal: some community witnesses stressed reinvesting revenues into anti‑poverty measures and targeted business supports rather than broad repeal. Commission staff requested written data and slide documentation from industry presenters to corroborate the quantitative claims.
Ending: The commission asked industry witnesses and unions to submit supporting documentation and further analysis to substantiate sales and job‑impact figures for the commission's review.
