Running Head: TAX ON HIGH SUGAR BEVERAGES 1

Would the creation of a tax on high sugar drinks change what American’s consume?

Amanda Burns

Ohio University
TAX ON HIGH SUGAR BEVERAGES 2

Abstract

Recently, there has been more focus than ever on what we can do as a nation to reduce unhealthy

and harmful behaviors. One of the results of these focuses has been a renewed interest in what

can be done to limit the sugar content within the items that we consume, specifically soft drinks.

Some states have taken drastic measures and outlawed larger sizes. In some cases, fast food

chains have eliminated their “Biggie” size. However, people still buy these beverages and drink

them as if they were water. The research that has been already been conducted indicates that

using different methods to try and curb this enthusiasm might work. One of those methods

includes raising the prices so that people will want to purchase cheaper options. In my survey, I

am attempting to measure the current attitudes people have on a tax. Do they support it? And if

they do, how much more are they willing to pay to help create programs to teach people how to

read labels and make better choices? In this paper, I review the research that I have collected

from one hundred Kroger employees in the Dayton, Ohio region.

TAX ON HIGH SUGAR BEVERAGES 3

Introduction

In today’s world, it may seem difficult to find healthy options to consume. Americans

have gained a reputation for their love of soft drinks and sugar. Considering that many of these

favorite beverages were originally designed as medicines to cure ailments such as headaches and

a lack of energy, it is not surprising that our fondness for soda has grown into an addiction.

These drinks are easily available and ready to consume. Almost everywhere that people go, they

can find these beverages. However, healthy options are not always as apparent. From fast food

establishments to fancy restaurants, these drinks are usually the cheaper option. The local

casinos around me offer these drinks on tap for free at self-service kiosks. While water is usually

available for free, many people may feel uncomfortable ordering it at a restaurant because of the

attitude of the waitstaff towards the lower cost affecting their tips. An ice-cold Coca-Cola is just

a tastier and easier option for most people.

Recently, scholars have posed the question of what would happen if we created a tax to

try and deter people from unhealthy options. Would they suddenly change their buying habits?

When it comes to concrete examples of price altering, not much has been done. In theory, the

belief is that people do not want to spend more than they must on anything. However,

consumers know what they like and do not like. Many of these people may not adapt well to a

change in the price of their drink. With this group, additional studies would need to be

conducted to find out why they continue to make their purchase choices and what could be done

to reduce sugar intake.

This topic is of interest to me because I want to know what other people think about the

beverages they consume. American’s go through phases and trends that involve healthier

consumption and then drop off rapidly, returning to old habits. When this is pointed out people
TAX ON HIGH SUGAR BEVERAGES 4

may make comments such as, “well if the healthy food did not cost so much, I would consider it”

or “junk food is just cheaper.” I began to wonder if the prices on unhealthy options were raised

to be more aligned with natural food prices, would people consider the natural food option. To

answer this question, I came up with several questions I wanted answers to. However, to

simplify my questionnaire and make it easier on survey participates, I decided to focus strictly on

beverages. I created a survey consisting of ten questions attempting to answer the hypothesis,

“Would creating a tax on high sugar drinks change the beverages that American’s consume?”

Sample Population

My sample population consisted of one hundred people split between two groups of

people from Kroger grocery stores. My first group involved handing out surveys within the store

that I work in. Because of my affiliation of being an employee, I was not allowed to ask

customers within the store to complete my survey. The second group I used for my sample pool

was comprised of Kroger associates from several stores that made up an official Facebook group

for the Dayton, Ohio region. I used surveymonkey.com to create a copy using the same format

that the paper version had. I informed both groups that their answers were anonymous and were

being used for a report in one of my final classes before I graduated.

Most of the people I asked agreed to submit a survey, however, a few refused and gave

the reason that they do not answer surveys under any circumstances. Fifty-five of the responses

were collected from paper surveys, while forty-five came from the online version. After

collecting one hundred surveys, I used the manual entry option on surveymonkey.com to add the

paper surveys to the ones that had already been collected through Facebook. Once I entered in

all the data, I reviewed the results of the survey in the following paper.
TAX ON HIGH SUGAR BEVERAGES 5

Survey Results

I began the survey on the most important question. To test the hypothesis, we need to

know if participants consume high sugar beverages. Since soda and pop are used

interchangeably depending on where a person is brought up, my question includes both terms.

When people think of high sugar drinks, soda is usually the first option that comes to mind.

However, other drinks to consider are energy drinks and sweet tea. The sugar content in a sweet

iced tea from McDonald’s can be very high. Because of these considerations, I expanded my

question to include them. A person might drink sweet tea, believing that it is a better option than

soda, for instance.

When looking at the results of the first question, “Do you drink high sugar drinks, such as

soda/pop, energy drinks, or sweet tea” I found that most people consume one of these beverages.

Fifty-four people said yes, while twenty said that they did not. Twenty-six replied that they

occasionally might consume one of these options. One of the issues, that I see with this question

is that these beverages contain different amounts of sugar. Adding energy drinks and sweet tea

to the question adds additional parameters to consider. A better version of this question would

be to stick to one option, such as “Do you drink soda/pop?” Reducing the focus makes the

question more direct and allows the researcher to focus on one type of beverage.

My next question was only directed at those who answered yes or occasionally on the

first question. The question, “If yes or occasionally, on average how many do you drink” was

answered by eighty of the respondents. The other twenty are the people who answered no on the

first question and were told to skip this question. Of these eighty, thirty-seven answered that

they consume these types of beverages at least once a day. Twenty-four stated that they will have

no more than two a day. While fourteen replied that they consume three to five a day, and the
TAX ON HIGH SUGAR BEVERAGES 6

remaining five claimed that they had more than five a day. These answers shine a light on

peoples drinking habits and allow the questioner to know if the respondent consumes a little or a

lot of the product.

However, an issue that popped up with this question was tied to the wording within the

question. If a person consumes these beverages occasionally, then it might be less then one a

day. These people felt that they had to select one a day since it was the smallest increment listed.

Since this group of people consumed less than one a day, the data on this option could be

considered invalid. I think that adding an additional option would identify the people who might

only drink these during special events but still allow them to state that they do consume them. On

a side note, people stating that they consume one of these drinks per day might not be completely

truthful. Sometimes it is easy to lose count of what a person consumes in a day. Just ask anyone

that has tried to track their calorie count, sometimes you forget to add something and other times.

Participants might not be accurately remembering what they drink on average.

For question three, I needed some background on where people currently stood on their

opinions of these beverages. To answer this I asked, “What is your current opinion of these

drinks?” The results showed that forty-four people drink these beverages primarily for the taste.

While nineteen consider the cost and convenience as their reason for choosing these beverages.

The interesting data that comes out of the next two options requires referring to question one.

Twenty people had stated that they did not consume these beverages, while twenty-six

occasionally had a high sugar drink. However, sixteen stated that they had no strong opinion and

twenty-one considered them unhealthy. These results may be due to some of the “occasionally”

people using the no strong opinion option to explain why they do not consume more of these

types. It should also be noted that one person skipped this question, perhaps they did not
TAX ON HIGH SUGAR BEVERAGES 7

understand what was being asked, did not agree with the options, or remained undecided about

their answer.

I think that this question could be expanded to include more options. When it comes to

opinions, it is important to know where people stand on a topic. Maybe these options are too

broad. I think that this question should be divided into two parts, covering taste, cost and

convenience, no strong opinion, and unhealthy ingredients. The second part of the question

should contain a text box for someone to explain why they chose their answer. Allowing

participants to explain themselves would allow the researcher to gauge the public perception of

high sugar content and be able to separate the categories easier.

The next two questions involve demographic information for research purposes. When

asked if they are male or female, sixty-three identified themselves as female and thirty-six said

male. One person skipped this question. Thirty-eight participates were between the ages of thirty

and fifty. While thirty-one state ages between eighteen and thirty. Twenty-five said that they

were over fifty and six chose under eighteen. Looking back at the number of drinks consumed

five said that they were consuming five or more of these beverages a day. It might be possible to

draw a conclusion, that these results could be from this age group. However, more research

would need to be conducted to identify consumption trends within each age range.

When asked where participants consume their favorite beverages the most, I was not

surprised by the answer. Fifty-four stated that they drink them at work. Considering that we

spend most of our time at work, I can understand why this is where the majority stands. Twenty-

six chose at home, nine selected with friends, and the remaining ten said that events are where

they drank them the most. One person skipped the question and later told me they skipped

because they felt it was unclear. Since they did not drink high sugar drinks, they did not think
TAX ON HIGH SUGAR BEVERAGES 8

that the question meant to include other types of beverages. I think that rewriting the question

might alleviate some of the confusion. The question should ask, when it comes to your favorite

beverages, including those that are not high in sugar content, where do you drink them the most

often?

The next question sets up a hypothetical example of a Coca-Cola with the price of $1.79.

I then provide five tax increase answers and asked the participants which one they would think

was reasonable, if the government were to tax high sugar beverages to offset health care costs

and pay for nutritional education. While twenty people chose the zero-tax increase option, forty

were in favor of a ten-cent increase. Twenty-three would support a twenty-five-cent increase,

four chose the thirty-five-cent option, and seven felt that the tax should rise to fifty-cents. The

survey suggests that the majority of the data supports a ten-cent increase would be acceptable,

however previous research suggested that the tax would need to be fifty cents or greater to make

people think twice about purchasing these types of beverages and raise enough revenue to fund

government supported nutritional programs.

I think that this question should be split into several questions to determine what people

think that the extra ten-cents should be spent on. The first question should be about what they

feel is a reasonable amount of tax. While the second question should have the same answers but

include using the tax for health care reform. Finally, the third question should also have the

same answers but suggest that the funds be used for nutritional information and subsidies. The

data would be interesting to see how the public splits their decision over multiple ways to spend

the funds generated from a beverage tax.

Next, I asked the participants what they would do if this high sugar tax was imposed.

Twenty-nine people claimed that they would continue to purchase the drinks and thirty-three said
TAX ON HIGH SUGAR BEVERAGES 9

that they would cut back on purchasing as much of the beverages. While only fifteen said that

they would change their buying habits and purchase untaxed drinks. The remaining twenty-three

stated that it would not impact them because they do not drink them now. However, looking

back to the first question only twenty claimed that they did not drink the beverages. Three

people may have been confused by the inclusion of drinks other than soda/pop. Perhaps those

people only drink iced tea or energy drinks.

For the ninth question, I wanted to know what people’s opinions were on the government

regulation of the amount of sugar content in drinks. Forty-three people felt that the government

should not intervene in what they consume. Seventeen participants felt that because healthcare

costs affect everyone, companies should have a limit on the amount of sugar in a product. While

forty of the survey takers think that labels should be clearer and support more education so that

consumers can make more informed choices in what they purchase. The data in this question

suggests that people are split between not wanting government regulation and those that support

some legislation with a better government mandated labeling system and education in reading

the labeling system.

The final question attempts to answer the hypothesis of the question of whether creating a

tax on high sugar drinks would change the beverages that Americans consume. On the survey, I

asked the question as follows, “Do you think that raising the prices of these types of drinks

would make an impact on people making alternative choices?” The final answer as determined

by my sample group is no. Seventy-three people stated no, people will continue to purchase the

drinks no matter what the cost. While the remaining twenty-seven were hopeful that rising costs

would cause people to seek out cheaper options. This supports the data from question nine that
TAX ON HIGH SUGAR BEVERAGES 10

determined that the current opinion of government regulation in the high sugar content of these

beverages was not welcome. People want to make these decisions for themselves.

Reflection on Survey Results

Overall, the survey answered what the public’s perception would be of a high sugar

content drink tax. People are not in favor of price increases on their favorite drinks just because

of the sugar in them. They also do not want the government to tell them what to drink. The

results show that most people will continue to purchase these types of beverages no matter what

the cost. I think that for some people, they are comparing the rising costs of cigarettes to the cost

of soda/pop. In this case, since all my respondents work in the grocery industry they have not

seen much of a decline in sales. As taxes continue to climb on cigarettes and tobacco, customers

alter their buying of other products to be able to continue to afford these items. It is possible that

the same could happen for the beverages that I listed.

I did not realize until recently that there is already a sugar or drink tax on some

beverages. Maybe I just did not notice it before. However, McDonald’s charges a seven-cent

tax on sweet tea but not unsweetened. Rapid Fired Pizza also has a beverage tax of twenty-five

cents when a two-liter drink is selected. While grocery stores are also allowed to charge a sales
TAX ON HIGH SUGAR BEVERAGES 11

tax on soft drinks. So, in a way the drink tax is already in place. The question becomes, “What

should be done with the proceeds from the monies gained from the tax?” If the amount was

raised with a clear indication of what that money would be earmarked for would people stop

buying it, consume less, or continue the same path? According to my data, people would

continue buying the drinks they enjoy even if the taxes are raised on them.

Additional demographic data would be beneficial to survey results. Asking questions

about the industry survey takers work in, education level, and the city of residence could

highlight trends in the attitudes towards high sugar content drinks. These questions could

showcase if more consumers live in the city or in rural areas, how much education has been

received, and if any nutritional classes were taken in the past. The work industry is important

because in some places these beverages are easier to obtain than others, such as a grocery store,

fast food, or an available cafeteria.

My survey was limited to Kroger employees across the Dayton, Ohio District. This may

have skewed the data because of the availability to grab one of these beverages at any time

during the day as opposed to an office that may not have food service or vending machines. I

think that this was a limitation of the survey. Additional groups of people should be included to

participate unless the survey was changed to specifically state that this is a poll on the attitudes

of Kroger employees. I also think that more age ranges should be included to learn which group

consumes the highest content. By looking at which age range consumes the most beverages,

researchers could learn where to focus education or media attention to reach this specific group.

The results would also show which group chose to ignore the high sugar options. Another option

that could be utilized would be to include freeform answers. Giving people the option to expand
TAX ON HIGH SUGAR BEVERAGES 12

their thoughts on government intervention would allow both sides to be vocal and possibly give

alternative suggestions.

One last area that I think should be explored is how much buying power is in the

participant's hands. Do they do the primary grocery shopping or does another household

member select items for them? This is important because if someone else is buying these high

sugar content beverages, then the survey taker is being exposed to the drink options by someone

else. They are drinking what is available within the house, which may affect what they purchase

when they have the option to make the decision for themselves. Another interesting area of

concern is how much influence children and advertising have on the buying power of

participants.

I think that the real test of the hypothesis should be from a controlled group of

participants with real money and products. In this simulated study, prices could be adjusted so

that the high sugar beverages cost more than low sugar or no sugar products. The choices that

people would make would be a real-world example of price comparison versus nutrition labels.

This would be a better approach to asking the question of “Would raising the cost make a

difference or would people still be tempted by their taste buds to continue to make the same

choices that they have made in the past?”

Overall, my survey proved that people will adjust their income to continue purchasing the

beverages they like. This may make reform in sugar content difficult because altering the taste

of their beverages would likely result in protests and revolts against companies. On the other

hand, nutritional programs can be expensive and there is no guarantee that people will benefit

from what is taught. However, I believe that something must be done because as a nation our

sugar consumption is much higher than in other countries.

TAX ON HIGH SUGAR BEVERAGES 13

Appendix A

Would creating a tax on high sugar drinks change the

beverages that Americans consume?

1. Do you drink high sugar drinks, such as soda/pop, energy drinks, or sweet
tea?
a. Yes
b. Occasionally
c. No (Skip to Question # 3).

2. If yes or occasionally, on average how many do you drink?

a. One a day
b. No more than two a day
c. 3-5 a day
d. More than 5 a day

3. What is your current opinion of these drinks?

a. No Strong Opinion Just Prefer Others
b. Drink them primarily for the taste
c. Drink them primarily for cost/convenience
d. Consider them Unhealthy

4. What is your age?

a. Under 18
b. Between 18-30
c. Between 30-50
d. Over 50

5. Are you
a. Male
b. Female

6. Where do you consume your favorite drink the most?

a. At Work
b. At Home
c. With Friends
d. Events
TAX ON HIGH SUGAR BEVERAGES 14

7. If the government were to tax high sugar drinks to offset health care costs
and pay for nutrition education, how much of a tax do you feel is
reasonable? Ex. $1.79 Coca-Cola.
a. .10 ($1.89)
b. .25($2.04)
c. .35($2.14)
d. .50($2.29)
e. 0 ($1.79)

8. If a sugar tax were imposed, what would you do?

a. Continue to purchase the drink
b. Buy a nontaxed drink
c. Cut back on purchasing as much of the taxed drinks
d. It would not impact me because I do not drink them now

9. What is your opinion on a government regulation of the amount of sugar

content in drinks?
a. Healthcare costs affect as all; companies should have a limit on the
amount of sugar in a product.
b. I do not support government intervention in what I consume
c. Labels should be clearer, and more education is needed so that
consumers can make more informed choices

10.) Do you think that raising the prices of these types of drinks would make
an impact on people making alternative choices?
a. Yes, rising costs will cause people to seek out cheaper options
b. No, people will continue to purchase the drinks no matter what the
cost.
TAX ON HIGH SUGAR BEVERAGES 15

Appendix B

Survey Results

Would Creating a tax on high sugar drinks change the beverages that
Americans consume?

Q1 Do you drink high sugar drinks, such as soda/pop, energy drinks, or sweet tea?

 Answered: 100
 Skipped: 0

Answer Choices – Responses –

Yes 54
26
Occasionally
20
No (Skip to Question # 3).
100
TOTAL

Q2 If yes or occasionally, on average how many do you drink?

 Answered: 80
 Skipped: 20

Answer Choices – Responses –

One a day 37

No more than two a day 24

3-5 a day 14

More than 5 a day 5

TOTAL 80
TAX ON HIGH SUGAR BEVERAGES 16

Q3 What is your current opinion of these drinks?

 Answered: 99
 Skipped: 1

Answer Choices – Responses –

No Strong Opinion Just Prefer Others 15

Drink them primarily for the taste 44

Drink them primarily for cost/convenience19

Consider them Unhealthy 21

TOTAL 99

Q4 What is your age?

 Answered: 100
 Skipped: 0

Answer Choices –Responses –

Under 18 6

Between 18-30 31

Between 30-50 38
25
Over 50
TOTAL 100

Q5 Are you

 Answered: 99
 Skipped: 1

Answer Choices –Responses –

Male 36

Female 63
TOTAL 99
TAX ON HIGH SUGAR BEVERAGES 17

Q6 Where do you consume your favorite drink the most?

 Answered: 99
 Skipped: 1

Answer Choices –Responses –

At Work 54

At Home 26
9
With Friends
10
Events
TOTAL 99

Q7 If the government were to tax high sugar drinks to offset health care costs and pay for
nutrition education, how much of a tax do you feel is reasonable? Ex. $1.79 Coca-Cola.

 Answered: 100
 Skipped: 0

Answer Choices –Responses –

.10 ($1.89) 46

.25($2.04) 23

.35($2.14) 4

.50($2.29) 7

0 ($1.79) 20
TOTAL 100

Q8 If a sugar tax were imposed, what would you do?

 Answered: 100
 Skipped: 0

Answer Choices – Responses –

Continue to purchase the drink 29

TAX ON HIGH SUGAR BEVERAGES 18

Buy a nontaxed drink 15

Cut back on purchasing as much of the taxed drinks 33

It would not impact me because I do not drink them now23

TOTAL 100

Q9 What is your opinion on a government regulation of the amount of sugar content in

drinks?

 Answered: 100
 Skipped: 0

Answer Choices – Responses

Healthcare costs affect as all; companies should have a limit on the amount of sugar 17
in a product.
43
I do not support government intervention in what I consume

Labels should be clearer, and more education is needed so that consumers can make 40
more informed choices
TOTAL 100

Q10 Do you think that raising the prices of these types of drinks would make an impact
with people making alternative choices?

 Answered: 100
 Skipped: 0

Answer Choices - Responses –

27
Yes, rising costs will cause people to seek out cheaper options
73
No, people will continue to purchase the drinks no matter what the cost.
TOTAL 100