PepsiCo is pulling its 2-liter and 12-pack products from Philadelphia grocery store shelves, citing the city’s new tax on sweetened beverages as the reason.
Philly grocery stores reportedly received letters from PepsiCo recently saying the company would no longer distribute the sizes to the city’s stores. The decision affects brands like Pepsi, Mountain Dew, Sierra Mist, Mug root beer, Gatorade, Tropicana and Lipton Iced Tea drinks. PepsiCo’s full portfolio in all package sizes is available outside the city.
Earlier this month, PepsiCo said the beverage tax was resulting in its laying off 80 to 100 workers at area distribution plants.
The Philadelphia City Council approved the 1.5-cents-per-ounce tax on sugar-sweetened and diet beverages by a 13-4 vote last year, making Philadelphia the first major U.S. city to enact such a tax. The city began collecting the tax on Jan. 1, 2017.