(CHICAGO) December 21, 2015 – NAMA announced today that Robert Donohue, California Automatic Vending Council (CAVC) President and NAMA Government Affairs Committee Member, testified last week before the City Council of Davis, California regarding a proposal to include a sugar-sweetened beverage tax on the city’s 2016 ballot.
The Davis City Council was considering a proposal to place a measure on the June 2016 ballot for a 1-cent-per-ounce tax on all sugar- sweetened drinks including sodas, energy drinks and sugary sports drinks. Diet sodas and juices would be exempt from the tax.
In his testimony, Donohue argued the tax would place a great burden on businesses and would be particularly difficult for vending operators, as they can only increase prices in five cent increments. He shared the example that on a 12 oz. can of soda, the additional tax would be 12 cents, putting the operator in the position of increasing the cost by 10 cents and absorbing the difference.
Donohue’s testimony also included comments on how the tax would be difficult to implement and track due to the hundreds of products it would affect; that it would make the city an anti-competitive and unwelcoming place for businesses and consumers; and that it was an ineffective approach to addressing public health issues like obesity.
“It was a privilege to represent our industry at the Davis City Council meeting and ensure that our voice was heard on the soda tax issue,” Donohue said. “A tax like this could have a tremendous negative impact leading to lost sales and additional costs for operators.”
“Robert’s efforts are a great example of how NAMA member grassroots involvement can truly make an impact on issues affecting the industry,” said Sandy Larson, NAMA Senior Director of Government Affairs. “Due to the testimony of Robert and others at the meeting, the vote has been delayed and continued outreach to build opposition to the proposal is already in the works. Participation in industry advocacy – at any level – has the power to make a difference.”
Founded in 1936, NAMA is the association representing the $25 billion U.S. vending and refreshment service industry. With more than 1250 member companies – including many of the world’s most recognized brands – NAMA provides advocacy, education and research for its membership. Visit NAMA on Facebook, Twitter and LinkedIn.
