Pepsi And Coke Pulling Large Bottles From Philly Stores Over Soda Tax

(RTTNews) - Pepsi is pulling large bottles of its products from Philadelphia grocery store shelves after the city's new 1.5-cent-per-ounce tax on sweetened drinks. Its rival Coca-Cola has also been pulling its large bottles, reports said. They are being replaced with smaller bottles and cans of the drinks.

The 2-liters and 12-packs of Pepsi and Mountain Dew, made by Pepsico, are disappearing from the store shelves. The company's decision also affects other sweetened drinks like Gatorade and Lipton Iced Tea drinks.

The new tax on sweetened and diet beverages is imposed at the distributor level. When passing that to the customer fully, a six-pack of 16-ounce bottles will cost $1.44.

Pepsi said it wants to offer products and package sizes that working families can better afford.

Pepsico reportedly said, "Because of the costly Philadelphia Beverage Tax, hard-working, value-oriented families are less able to afford larger package sizes and multi-packs, where the tax burden is the greatest. ... Our full portfolio of beverages in all package sizes will still be available outside the city."

Coca-Cola is also said to be promoting its 7.5-ounce mini-cans and 1.25-liter bottles in stores. According to the firm, the move is not merely because of tax burden, but also because they're what consumers want.

Meanwhile, Mayor Jim Kenney's office reportedly said the industry has been trending toward smaller sizes well before the tax passed.

The new tax, which went into effect January 1 of this year, aims to raise $91 million annually in revenue. It will be used for pre-K expansion, community schools, reinvestment in parks and recreation centers, as well as for Philadelphia's general fund. The tax also applies to many low- and zero-calorie beverages.