Proposed soda ban another blow for soft-drink industry

Associated Press

NEW YORK

Is the Big Gulp to blame for obesity in the Big Apple? New York City Mayor Michael Bloomberg thinks so.

But Bloomberg’s proposal Thursday that the city prohibit restaurants, delis and movie theaters from serving large cups of sodas and other sugary drinks is a bitter twist for companies that make beverages such as Coke, Dr Pepper and Pepsi. The ban, which would be the first of its kind in the nation, comes at a time when soda consumption has been declining.

The industry has struggled in recent years as more health-conscious Americans have shifted away from sugary sodas toward bottled water and sports drinks such as Gatorade. That’s led to a 20 percent reduction in the calories consumed per capita through carbonated beverages over the past decade, according to the industry tracker Beverage Digest. Under Bloomberg’s proposed ban, soda consumption could slip further.

The ban would impose a 16-ounce limit on any sugary bottled or fountain drinks that contain more than 25 calories per 8 ounces. It would not affect diet soda, and any drink that is at least 70 percent juice or half milk or milk substitute would be exempt. The proposal requires the approval of the city’s Board of Health — considered likely because its members are all appointed by Bloomberg.

It’s difficult to estimate the potential financial impact of the proposed ban because there’s no breakdown of what percentage of drinks sold are over the proposed size limit or how consumers and retailers would adjust if the ban were in place.

City officials said some calorie-heavy drinks such as Starbucks Frappuccinos probably would be exempted because of their dairy content, while Slurpees and Big Gulp drinks at 7-Eleven wouldn’t be affected because the stores are regulated as groceries.

PepsiCo Inc., the nation’s second-largest soda maker, declined to comment on the proposal. But Coca- Cola Co., the largest U.S. soda maker, blasted the move.

“The people of New York City are much smarter than the New York City Health Department believes,” the Atlanta-based company said in a statement. “New Yorkers expect and deserve better than this. They can make their own choices about the beverages they purchase. We hope New Yorkers loudly voice their disapproval about this arbitrary mandate.”