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Coca-Cola: Philadelphia's tax on sweetened drinks is hurting

Written by The Associated Press | Apr 28, 2017 6:12 PM
Philly_soda_tax_march17.jpg

In this March 16, 2017 photo, Albert Delarosa stocks shelves with Coca-Cola products at the IGA supermarket in the Port Richmond neighborhood of Philadelphia. Less than three months into Philadelphia's new tax on sweetened drinks, the stakes have escalated: Beverage makers say the measure is hurting sales so much they need to cut jobs, while city officials say the moves are a ploy to get the tax struck down. (AP Photo/Matt Rourke)

(Philadelphia) -- Coca-Cola says Philadelphia's new tax on sweetened drinks is seriously hurting their business in the city.

According to a story on the beverage company's website, the company's volume in Philadelphia is down 32 percent from a year ago.

Fran McGorry, president and general manager of the local bottler known as Philly Coke, says because of the lost sales, the company's workforce has been reduced by about 40 positions. The company has more than 700 workers in the region.

Lauren Hitt, a spokeswoman for Mayor Jim Kenney, says the soda industry is suing the city to repeal the tax and has repeatedly looked for opportunities to scapegoat it. She says Coca-Cola had a bad first quarter and pointed to an announcement of job cuts across all their markets earlier this week.

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