Uncategorized

Berkeley’s Soda Tax Boosts Retail Prices of Sugary Drinks

Published

10 years ago

October 18, 2015

By Sarah Yang, UC Berkeley News

Not long after Berkeley became the first city in the country to levy an excise tax on sugar-sweetened beverages, questions arose about whether the move would have its desired effect by increasing the retail price of soda.

The latest signs, coming from a new study by UC Berkeley researchers, say yes.

The findings, published in the American Journal of Public Health, come nearly a year after Berkeley voters approved an excise tax of one cent per ounce on sugary drinks. Unlike a sales tax, which is paid by consumers at the register, an excise tax is levied before the point of purchase, potentially leading to higher retailer prices, so buyers are more aware of the higher cost before they pluck the beverage from store shelves.

These new study results differ from those of a working paper on Berkeley soda prices published in August, which suggested that a smaller proportion of the tax was passed through to the retail price of soda.

“No one knew how retailers would deal with the added costs of the tax,” said study lead author Jennifer Falbe, a UC Berkeley postdoctoral researcher in public health nutrition. “Increasing the price of sugary drinks is a critical first step in discouraging consumption, so it’s incredibly encouraging that we’re seeing pass-through of the tax to higher retail prices so early after implementation. We expect higher price increases in the future as small business owners learn more about the tax.”

To establish a baseline comparison, researchers collected data on most beverage prices in fall 2014, before the soda tax was passed. They not only looked at stores in Berkeley, but also included retailers in Oakland and San Francisco to account for other factors that may affect prices regionally.

Data was collected again three months after the tax went into effect. The researchers found that in Berkeley, soft drink prices increased by about seven-tenths of a cent more per ounce than in other cities. Given the tax was 1 cent per ounce on distributors of sugar-sweetened beverages, this means that about 70 percent of the tax was passed through to the retail price.

Fruit-flavored drinks, including cranberry cocktail and lemonade, saw a slightly smaller increase of about half a cent per ounce. For all categories of sugar-sweetened beverages, the overall price increased about half a cent per ounce.

The researchers also looked at the price of non-sugary beverages, which did not change more in Berkeley than in comparison cities during the study period.

These study results differ from those of a working paper on Berkeley soda prices published in August, which suggested that a smaller proportion of the tax was passed through to the retail price of soda.

The differences between the results from this new UC Berkeley research and the earlier working paper may be due to when and how stores were sampled in the two studies, Falbe said. Also, the UC Berkeley study distinguished between retail store types. The price of sugary beverages changed little at chain drugstores but more at supermarkets.

“This is important because most Americans do their primary grocery shopping at supermarkets,” said Falbe.

The study comes as other cities around the country are considering their own soda tax measures. But even with the limited success of getting such “sin taxes” passed, sales of soda, particularly the full-calorie versions, have been experiencing a steady decline over the past decade.

According to a youth survey by the Centers for Disease Control and Prevention, the percentage of high school students reporting consumption of soda in the prior week dropped from 33.8 percent in 2007 to 27 percent in 2013.

“Regardless of price increases, soda taxes can be a means of sustainably funding public health efforts,” said study senior author Dr. Kristine Madsen, an associate professor at UC Berkeley’s School of Public Health.

She noted that when Berkeley established a general tax on sugary beverages, it also established an expert panel to make recommendations on funding efforts to reduce obesity and sugar-sweetened beverage consumption. The Berkeley City Council has already allocated funds to support the Gardening and Cooking Program in the Berkeley Unified School District.

Other co-authors of the paper are Nadia Rojas, a research associate at UC Berkeley’s School of Public Health, and Anna Grummon, a global public health graduate student at the University of North Carolina.

The Global Obesity Prevention Center at Johns Hopkins University, the National Institute of Child Health and Human Development, and the University of California Office of the President helped support this research.

Oakland Post

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Oakland Housing and Community Development Department Awards $80.5 Million to Affordable Housing Developments

Published

6 months ago

June 17, 2025

Oakland Post

Special to The Post

The City of Oakland’s Housing and Community Development Department (Oakland HCD) announced its awardees for the 2024-2025 New Construction of Multifamily Affordable Housing Notice of Funding Availability (New Construction NOFA) today Five permanently affordable housing developments received awards out of 24 applications received by the Department, with award amounts ranging from $7 million to $28 million.

In a statement released on Jan. 16, Oakland’s HCD stated, “Five New Construction Multifamily Affordable Housing Development projects awarded a total of $80.5 million to develop 583 affordable rental homes throughout Oakland. Awardees will leverage the City’s investments to apply for funding from the state and private entities.”

In December, the office of Rebecca Kaplan, interim District 2 City Councilmember, worked with HCD to allocate an additional $10 Million from Measure U to the funding pool. The legislation also readopted various capital improvement projects including street paving and upgrades to public facilities.

The following Oakland affordable housing developments have been awarded in the current round:

Mandela Station Affordable

238 Affordable Units including 60 dedicated for Homeless/Special Needs
Award: $15 million + previously awarded $18 million
Developer: Mandela Station LP (Pacific West Communities, Inc. and Strategic Urban Development Alliance, LLC)
City Council District: 3
Address: 1451 7th St.

Liberation Park Residences

118 Affordable Units including 30 dedicated for Homeless/Special Needs
Award: $28 million
Developer: Eden Housing and Black Cultural Zone
City Council District: 6
Address: 7101 Foothill Blvd.

34th & San Pablo

59 Affordable Units including 30 dedicated for Homeless/Special Needs
Award: $7 million
Developer: 34SP Development LP (EBALDC)
City Council District: 3
Address: 3419-3431 San Pablo Ave.

The Eliza

96 Affordable Units including 20 dedicated for Homeless/Special Needs
Award: $20 million
Developer: Mercy Housing California
City Council District: 3
Address: 2125 Telegraph Ave.

3135 San Pablo

72 Affordable Units including 36 dedicated for Homeless/Special Needs
Award: $10.5 million
Developer: SAHA and St. Mary’s Center
City Council District: 3
Address: 3515 San Pablo Ave.

The source of this story is the media reltations office of District 2 City Councilmember Rebecca Kaplan.

Oakland Post

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Activism

Oakland Housing and Community Development Department Awards $80.5 Million to Affordable Housing Developments

Published

11 months ago

January 30, 2025

Oakland Post

Rebecca Kaplan, interim District 2 city councilmember. File photo.

Special to The Post

The following Oakland affordable housing developments have been awarded in the current round:

Mandela Station Affordable

238 Affordable Units including 60 dedicated for Homeless/Special Needs
Award: $15 million + previously awarded $18 million
Developer: Mandela Station LP (Pacific West Communities, Inc. and Strategic Urban Development Alliance, LLC)
City Council District: 3
Address: 1451 7th St.

Liberation Park Residences

118 Affordable Units including 30 dedicated for Homeless/Special Needs
Award: $28 million
Developer: Eden Housing and Black Cultural Zone
City Council District: 6
Address: 7101 Foothill Blvd.

34th & San Pablo

59 Affordable Units including 30 dedicated for Homeless/Special Needs
Award: $7 million
Developer: 34SP Development LP (EBALDC)
City Council District: 3
Address: 3419-3431 San Pablo Ave.

The Eliza

96 Affordable Units, including 20 dedicated for Homeless/Special Needs
Award: $20 million
Developer: Mercy Housing California
City Council District: 3
Address: 2125 Telegraph Ave.

3135 San Pablo

72 Affordable Units including 36 dedicated for Homeless/Special Needs
Award: $10.5 million
Developer: SAHA and St. Mary’s Center
City Council District: 3
Address: 3515 San Pablo Ave.

The source of this story is media reltations office of District 2 City Councilmember Rebecca Kaplan.

Oakland Post

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Alameda County

Oakland Acquisition Company’s Acquisition of County’s Interest in Coliseum Property on the Verge of Completion

The Board of Supervisors is committed to closing the deal expeditiously, and County staff have worked tirelessly to move the deal forward on mutually agreeable terms. The parties are down to the final details and, with the cooperation of OAC and Coliseum Way Partners, LLC, the Board will take a public vote at an upcoming meeting to seal this transaction.

Published

11 months ago

January 11, 2025

Oakland Post

Alameda County Board of Supervisors Chairman David Haubert. Official photo.

Special to The Post

The County of Alameda announced this week that a deal allowing the Oakland Acquisition Company, LLC, (“OAC”) to acquire the County’s 50% undivided interest in the Oakland- Alameda County Coliseum complex is in the final stages of completion.

Oakland has already finalized a purchase and sale agreement with OAC for its interest in the property. OAC’s acquisition of the County’s property interest will achieve two longstanding goals of the County:

The Oakland-Alameda Coliseum complex will finally be under the control of a sole owner with capacity to make unilateral decisions regarding the property; and
The County will be out of the sports and entertainment business, free to focus and rededicate resources to its core safety net

In an October 2024 press release from the City of Oakland, the former Oakland mayor described the sale of its 50% interest in the property as an “historic achievement” stating that the transaction will “continue to pay dividends for generations to come.”

The Board of Supervisors is pleased to facilitate single-entity ownership of this property uniquely centered in a corridor of East Oakland that has amazing potential.

“The County is committed to bringing its negotiations with OAC to a close,” said Board President David Haubert.