In 2012 the soda industry poured big bucks into defeating ballot initiatives in Richmond, CA, and El Monte, CA, a total of $3.8 million. The measures, which would have put a tax on sugared soft drinks, ending up being defeated by crushing margins, 2:1 in Richmond and more than 3:1 in El Monte.
Two years later, undaunted by nearby Richmond's experience, Berkeley, California is trying to pass its own soda tax. Rumors have that that the measure is ahead in the polls, there are 'Yes on Measure D' signs all over town... and Big Soda, aka the American Beverage Association, is running scared.
An original $300,000 contribution has just been augmented with $500K, donated by the soda industry to 'No on Measure D,' a grassroots an astroturf campaign if there ever was one. And if the 2012 campaigns are any indication, evem more money is likely to be committed.
They've taken out a full page ad in yesterday's Daily Cal, the campus newspaper, and I'm expecting live circus performers at every interesection performing a 'No on R' trapeze act.
Big Soda has been batting 1000 in its attempt to squash soda tax proposals across the country. According to Wikipedia, along with Richmond and El Monte, proposals has been withdrawn or defeated in New York State, Washington State, California, Telluride, CO, and at least twice in Congress. In fact, defeats go back to 1914, when Woodrow Wilson proposed a special revenue tax on soft drinks that went nowhere!
The ABA is worried that if Berkeley falls, many other cities and eventually states will follow, despite the crushing 2012 defeats.
San Francisco also has a soda tax ballot initiative this year, but because the revenue from that is dedicated to specific projects it requires, under California law, a 2/3rds majority to pass. That's going to be really hard. Berkeley's soda tax monies would go to its general fund, and so require only a simple majority. This is the basis for one of the lines of attack on the measure, opponents claiming that the City of Berkeley will use the money to no good purpose.
Despite these attacks and the massive amount of money being poured in in opposition, I believe there is a real chance it will pass in my hometown in November, thereby making a bit of history.